UK households are being warned that their annual energy bills could increase by £500 because of the war in the Middle East.
After the US and Israel launched attacks on Iran, the conflict in the region has dramatically unfolded, raising fears over relied-on supplies of oil and liquified natural gas from the Gulf.
Latest figures show the price of UK wholesale gas has almost doubled since the start of the war.
Following Tuesday’s spring statement delivered by chancellor Rachel Reeves, think tank The Resolution Foundation issued a warning that the rise in price of oil and gas could impact UK household bills.
In a statement, it said: “If recent rises in the price of oil and gas were to be sustained they could add around a percentage point to inflation and £500 on to typical annual energy bills.
“The latter increase would be particularly damaging for poorer families as they spend more than twice as much of their budgets on energy as richer households.”
The warning comes just days after the regulator Ofgem announced its price cap on energy bills would fall in April for a typical dual fuel household.
However, with pressure from wholesale prices, the cap could be increased in three months’ time.
This is a breaking story – more to follow…
