GREAT BRITAIN ENERGY BILLS RISE 13% FROM JULY AS HOUSEHOLD DEBT SURGES

The quarterly price cap on gas and electricity will increase by 13% from 1 July, raising bills to an equivalent of £1,862 annually for an average household in Great Britain. The rise comes as official figures from Ofgem recorded that consumer energy debt reached nearly £4.8bn, an all-time high. Unpaid energy bills increased by £240m in the three months prior to the announcement, according to data released by the industry regulator.

Ministers face mounting pressure to address energy costs ahead of winter. Rachel Reeves, the Chancellor, has previously ruled out introducing universal energy support similar to that provided by Liz Truss's government in 2022. James Mabey, a policy analyst at National Energy Action, a fuel poverty charity, stated that energy debt creates cold homes, rising anxiety and difficult choices about essential spending, and called for debt relief to be scaled up. Nigel Pocklington, chief executive of supplier Good Energy, described rising bills as a financial crisis for millions of households and called for urgent reform of the market to create a cleaner, more affordable energy system.

Wholesale energy prices have increased due to disruption to oil and gas shipments via the Strait of Hormuz over the past four months. The quarterly price cap has previously delayed the full impact of wholesale price movements on household bills, but rises taking effect from 1 July will remain in place until the next adjustment in October. Andy Burnham, reported to be positioned for the role of prime minister, is expected to face immediate calls to address high energy bills upon taking office.