Amid rising energy prices, two out of adults report their cost of living rose since the 1st of January in the UK. A recently published Opinions and Lifestyle Survey reveals that the higher electricity and gas bills are cited as one of the main causes of the rising cost of living by almost eight out of ten people. 

Fuel prices increased significantly last October after a 12% rise in the Office of Gas and Electricity Markets energy price cap. 

The latter is set to be reviewed by the energy regulator once more in the following days, and prices are expected to increase  even more by spring. 

This situation will most likely disproportionately hit households with lower incomes. By the end of 2020, the poorest 10% of British households spent over half of their average £300 of weekly expenditures on food, transport, and housing. 

The wholesale price of gas in January 2022 was nearly four times higher compared with early 2021. The rises have then continued since last summer. 

Data provided by National Grid reveals that the seven-day average price in December 2021 was over eight times higher compared with the same period one year before. 

Cover photo: Pixabay

Author: Sébastien Meuwissen