Not only the lowest-earners, but also the middle class will need government support due to rising energy prices, warns UK Finance Minister Nadhim Zahawi. In his opinion, the British economy is “in a national crisis”.
On Friday, UK energy regulator Ofgem announced an 80% increase from October. a maximum price cap per kilowatt hour that energy suppliers may charge from private customers. For typical consumption, your energy bill will increase from 1971 to £ 3,549 per year. This is the second drastic increase this year, because in April they increased by 54%, and according to forecasts next year, the amount of fees will exceed even 6,000. pounds.
“My concern is those who are not on benefits”
The UK government announced back in May that all households would receive a £ 400 rebate from October to help ease rising energy costs, and that benefit recipients would receive an additional £ 650 support. At the time, however, a typical bill was predicted to rise to £ 2,800 a year. Candidates for the new prime minister, Foreign Minister Liz Truss and former Finance Minister Rishi Sunak, promise even greater support, but have yet to come up with any details.
– My concern is those who are not on benefits. If you’re a long-serving nurse or teacher earning £ 45k a year and your energy bills are rising 80 percent and are likely to increase even more in the new year, it’s really hard. If you are retired, it is really hard, Zahawi told the Daily Telegraph.
He added, while Universal Credit – a disposable benefit – is an effective way to channel support, the government is examining all options to help those who really need it.
He also warned that it was high energy prices may persist for one and a half or two years. – In terms of economy, we are in a national crisis. It could go on for 18 months, two years if (President of Russia Vladimir Putin he will continue to use energy as a weapon, he said.
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