Cost of living crisis: Households underestimating how much energy bills will rise, research shows | UK News

Most households are underestimating the huge energy price rises predicted in the coming months, and some even believe they will fall, new research shows.

Families believe household gas and electricity bills will rise by £487 from the start of October, despite experts predicting a rise of more than three times that, research commissioned by Uswitch found.

The bill for the average household will rise by around £1,600 to over £3,600, according to the latest forecasts.

Only around one in 13 people (8%) thought their bills would rise by more than £1,500 – which is what experts are predicting.

More than a quarter of households said they did not know what was likely to happen to the price cap on their energy bill, according to the survey.

Meanwhile, 12% said they think it will slow this winter.

Director of regulation at Uswitch, Richard Neudegg, said: “With the summer holidays in full swing, it’s not surprising that so many people haven’t been on top of the news about price cap changes.”

He has urged the government to act quickly to provide more support to households, adding that households “desperately need to know that adequate financial support will be provided”.

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Labour’s energy plan explained

October’s price cap will be announced by energy regulator Ofgem on 26 August.

Current plans to ease the burden of the increase were announced in May when the price cap was expected to reach around £2,800 in October. It is now believed to be £800 higher than in October, and could reach as high as £5,000 in April.

Back in May, the government announced £400 for each household, which will be paid in six instalments. It also promised support of up to £1,200 for more vulnerable people.

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But Neudegg said the promised £66-a-month over winter would “barely touch the sides” of the projected increase.

As fears grow over the rising cost of living, pressure is mounting on the two Tory leadership candidates Liz Truss and Rishi Sunak to come up with detailed proposals.

Researchers at Opinium polled 2,000 adults across the UK online between 19 July and 22 July. They emphasized that the committee should be politically and nationally representative.

People were asked: “Ofgem will review the energy price cap again in August, to implement in October. What do you think will happen to the price of the standard variable tariff in October after the review?”.

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