On Friday the UK energy regulator Ofgem announced the annual price cap for annual energy bills would rise from £1, 971 to £3, 549 this October. The energy company E.on has suggested one in eight UK households are currently struggling to pay their bills and predicts the figures will rise to 40 percent in October when the new price cap begins.
On Sunday, Conservative leader candidate Liz Truss spoke with the Sunday Mail about her plan to tackle the cost-of-living crisis.
She said: “I have a clear plan to get Britain through this storm and out the other side, and the determination to deliver it.
“A recession is not inevitable, but we need to make sure we do not talk ourselves into one. I don’t believe in managed decline and I won’t accept it. I believe in hope over fear.”
In the UK, energy prices rose 54 percent in April and will now rise to 80 percent in October, which is expected to affect over 24 million households.
Jonathan Brearkey, an Ofgem representative, said the current rise “will be devastating for families”.
He told the BBC: “The difficult news I have to give today is that prices look like they are continuing to rise.”
Economists have also predicted that inflation could top 18 percent which may force interest rates higher than the current 1.75 percent.
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A senior source in Ms Truss’s campaign said: “Liz gets that things will be difficult this autumn and winter, but fundamentally she is optimistic and hopeful about the future of the country.
“She’s got a clear plan to get us through tough times and out the other side, and a clear plan to get the country firing on all cylinders in the longer term.
“She’ll stand up to people who talk down our country, stand up to trade union barons, to vested interests holding the economy back, and to dictators like Putin. She’ll deliver the tough love the country needs.”
Either Foreign Secretary Liz Truss or former Chancellor Rishi Sunak will become Britain’s Prime Minister next week.
Members of the Conservative party are currently voting for a new party leader, and the voting results for the leadership race will be announced on September 5.