Liz Truss, the frontrunner to replace him, promised targeted assistance to help those hardest hit by the high bills, but she steadfastly refused to detail the plan. She and her opponent, Rishi Sunak, have rejected more drastic measures, such as a two-year freeze on energy prices using state subsidies.
“I know how distressed millions of Britons are and how gravely concerned they are about the consequences of today’s off-gem decision on the next energy price cap.” Other parts of the world are facing the same challenges, and they will grow as winter sets in.”
But at a campaign rally with Sunak on Thursday, she said the solution to the crisis was not to carelessly spend more money on consumers. Sunak, who has proposed cutting the value-added tax on energy bills, warned that without drastic action, “millions of people are at high risk of falling into poverty.”
The UK is much less dependent on Russian gas than Germany and other European countries.
It also suffers from worse inflation than other major European countries. Consumer prices rose 10.1% year-on-year last month, putting pressure on household budgets at the fastest pace in 40 years. The Bank of England expects inflation to peak at he 13% in October as new energy prices hit households. Other estimates are higher. Citibank analysts say interest rates could reach 18% early next year.
“The pressure on marginalized households will only increase, and the call for help will be louder than ever,” Martin Young, a utilities analyst at financial services firm Investec, wrote in a recent note to clients. wrote. Young expects a further jump to £4,210 in January.