Russia war could see energy bills hit £3,000 | Personal Finance | Finance
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Experts are warning that Russia’s invasion of Ukraine will exacerbate the crisis even further due to the pressure it is putting on the already struggling whole gas market. Next month, energy bills are expected to rise to nearly £2,000, according to industry regulator Ofgem. However, many analysts are predicting that the energy price cap could hit £3,000 by October if action is not taken.
UK natural gas prices have soared by over 30 percent during the devastating conflict between Russia and Ukraine has seen.
Speaking exclusively to Express.co.uk, Dan Paskins, the director of UK Impact at Save the Children, outlined how the Russia-Ukraine conflict will have a knock on effect on children living in fuel poverty in the UK.
“It depends upon how long it lasts and whether there will be further escalation,” Mr Paskins said.
“As of January, we’ve got about 2.2million households with children in poverty. A rise from two million in 2019.
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“The latest estimates that we’ve seen by October cap might be over £3,000. We know it’s going to hit nearly £2,000 by the beginning of April.”
In regards to how the Government has practically responded to energy bills rising, he added: “I think a lot of the action the Government has announced so far was based on the idea the this will be a short-term blip. The price will go up and down again.
“Obviously, back in October, the government took away the £20 weekly increase to Universal Credit.
“In addition, the amount provided by social security is going up to less than half the rate of inflation.
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“Each year, the support families get from the Government is falling and, by and large, working families are on particularly low wages.”
In what he wants to see in terms of Government action, Mr Paskins is calling for benefits to be raised to align with inflation and for a long-term strategy to be implemented in tackling fuel poverty.
The poverty expert explained: “The prospect of energy prices rising even more than has already been forecast is incredibly worrying for households on low incomes.
“Parents we work with say they just don’t know what they’re going to cut back on next.
“A further increase in energy bills will leave even more children living in cold and damp homes, going to bed hungry, and missing out on the opportunities they need to grow and thrive.
“The best way of supporting families through this crisis is by making sure benefits keep up with rising costs – but right now, they’re on track for a real terms cut.
“The UK Government must act to support families and make sure benefits increase in line with inflation.”
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