Two-thirds of UK families could be in fuel poverty by January, research finds

theguardian.com:

Two-thirds of all UK households will be trapped in fuel poverty by January with planned government support leaving even middle-income households struggling to pay their bills, according to research.

It shows 18 million families, the equivalent of 45 million people, will be left trying to make ends meet after further predicted rises in the energy price cap in October and January.

An estimated 86.4% of pensioner couples are expected to fall into fuel poverty, traditionally defined as when energy costs exceed 10% of a household’s net income, and 90.4% of lone parents with two or more children.

The new study by the University of York also shows huge regional variation in the cost of living crisis with 57.9% of households in the south-east predicted to be struggling with energy bills by January, compared with 70.9% in the West Midlands and 76.3% in Northern Ireland.

The figures come after inflation soared to a 40-year high of 10.1% – heaping more pain on households as the costs of food, energy and fuel continue to rise.

Asda chairman Stuart Rose criticised the government– which will fund a £400 universal energy grant in October as well as further support targeted at the poorest families – for a “horrifying” lack of action over inflation. “It’s going to be painful for everybody,” he told BBC radio.

“We have been very, very slow in recognising this train coming down the tunnel,” added the Tory peer.

The Institute for Fiscal Studies also warned that “permanent tax cuts” promised by the Tory leadership candidates, Liz Truss and Rishi Sunak, could exacerbate pressures on the public purse. It suggested short-term government borrowing to support struggling households may be a necessary step for the next prime minister.

The warning that