New analysis suggests that single parents are set to be hit hardest by soaring energy bills. (Getty Images)
Soaring energy bills are set to hit some Brits significantly harder than others, with single parents worst affected, according to new analysis.
Energy costs are set to increase by up to 50% in April when the energy price cap rises, supercharging the growing cost-of-living crisis.
This comes on top of higher prices for everyday items, with inflation reaching its highest rate for 30 years after rising to 5.4% in the 12 months to December.
It is estimated that some three million households were already behind on their energy bills before prices began to rise in October, according to energy ombudsman Ofgem.
Household bills are set to soar later this year as the default price cap increases, exacerbating the cost of living crisis. (Yahoo News UK/Ofgem/Cornwall Insights/Flourish)
The New Economics Foundation (NEF), a think-tank for social and economic justice, warns that the price cap increase will affect poorer families more severely as they spend a higher proportion of their income on energy.
Single parents will see the proportion of their disposable income spent on energy increase by 2.2%.
This is 56% higher than the average family, who will see the proportion of their disposable income spent on energy increase by 1.4%.
The proportion spent by pensioners on energy will increase by 2%, and for families with a disabled member it will increase by 1.7%.
Read more: Cost of living crisis: ‘My family now uses food banks every week’
NEF also highlighted that those on lower incomes are more likely to have poorly insulated housing, which can push up the cost of heating a home.
Earlier this month, the low and middle income think-tank the Resolution Foundation warned that 2022 could be “catastrophic” for millions of Brits as rising energy bills, National Insurance hikes, and inflation make it “the year of the squeeze”.
Some experts warn 2022 could be worse than the 2008/09 financial crisis for millions of Brits as inflation and planned tax rises begin to bite.
Watch: Cost of living crisis: Tory minister confronted over man ‘so hungry he has to eat toothpaste’
Business secretary Kwasi Kwarteng insisted on Friday that the government is “trying to work out the best way to deal with what is a really, really serious problem” following reports the Treasury is considering £500 one-off payment for those most in need.
“Lots and lots of things have been discussed, and I’m sure that’s one of the things that we’ve been talking about,” he said.
“My officials in the department speak to Treasury officials, and ministers speak to each other …….
Source: https://news.yahoo.com/energy-bills-crisis-to-hit-households-unequally-172839345.html