Energy prices to soar even HIGHER: Cost of electricity and gas may hit £6,000 in April
Energy costs could hit £6,000 next April as latest forecasts show gas and electricity prices will continue to spiral even higher than thought next year.
The energy price cap is set to soar by more than threefold from an already record level, according to a forecast that will worry millions of families.
Energy consultancy firm Auxilione has predicted the price cap will rise by more than £4,000 in the next eight months.
Should bills hit the £6,000 mark, this will mean almost a fifth of the average UK salary, which as of 2021 was around £31,000 according to ONS figures.
The announcement comes after NHS bosses said warned yesterday that unless the government intervenes in the cost of living crisis, they will be facing a humanitarian crisis this winter.
UK gas prices are soaring after Russia began throttling off supplies to Europe, causing a global shortage as EU leaders scramble for supplies
The cost-of-living crisis is only set to get worse between now and next summer, as consultancy Auxilione predicted that the price cap on bills will gradually rise by more than £4,000 in the next eight months.
They said that the cap is expected to reach £3,576 in October, rising to £4,799 in January, and finally hitting £6,089 in April.
The cap is currently at £1,971 for the average household.
The updated forecast has been released just days after Auxilione predicted a rise to around £5,500.
The company has now issued a new one based on Friday’s gas price in another major blow for families around Britain that will put extra pressure on the Government to act.
Around 45 million people are forecast to be thrown into energy poverty this winter, spurring the NHS confederation writing to the government to demand more support for families amid the cost of living crisis.
The NHS Confederation explained that those who cannot afford to heat their home, buy nutritious food or cook a hot meal will see their health ‘quickly deteriorate’. This will cause a rise in the number of annual deaths linked to cold homes – which already hits 10,000 per year
Matthew Taylor, chief executive of the NHS Confederation, said more elderly people will die as their homes turn cold and some will go hungry in an effort to afford energy.
Not only will this cause a ‘public health emergency’, but it will also pile pressure on the NHS, which is already in the middle of a crisis, the group claims.
The letter states: ‘We are urging you to take urgent and direct additional action to support those who need it most as we approach winter.
‘We have been asked to convene this letter on an issue where NHS leaders, would not usually intervene – but they feel they can no longer stay silent.
‘Their starting point is that they are already seeing huge suffering in our local communities because of the cost of living crisis.
‘With energy prices set to rise, they fear that many people will face the awful choice of skipping meals to heat their homes or having to put up with living in cold, damp, conditions.
‘From a health perspective, this will inevitably lead to more illness up and down the country.
‘It will lead to worse health outcomes, including damaging children’s life chances, as well as exacerbating health inequalities that have already been widened as a result of the pandemic.’
The NHS bosses explained that those who cannot afford to heat their home, buy nutritious food or cook a hot meal will see their health ‘quickly deteriorate’.
This will cause a rise in the number of annual deaths linked to cold homes – which already stands at 10,000 a year.
Millions of homes are likely to be kept very cold as people try to save what little they can on their energy bills.
Spiraling gas prices are a result of several factors, and first rose sharply after the end of lockdowns around the world amid the coronavirus pandemic. The sharp rise in demand for gas was followed by a huge rise in costs too.
Around the world, but especially within Europe, this was made drastically worse by war in Ukraine. Since then Russian gas supplies into Europe have been severely slashed.
It has caused the gas price to spike to levels never seen before.
Tory MP Sir Robert Goodwill received backlash yesterday after suggesting that people must learn how to cook if they want to keep up with rising bills.
The energy price cap, which is set by Ofgem, only limits the profits that energy suppliers can take.
It does not protect customers from runaway wholesale energy prices.
The consultants forecast that bills will slowly drop in the second half of next year, to £5,486 in July and £5,160 in October 2023. But this will be of little comfort to families who are already struggling.
