Cornwall Insight, an energy consulting company, predicts that the electricity bills of Britons might swell this winter so that an average household will have to pay more than £3,000 per year for energy. With such huge utility bills, millions of people could go broke, being unable to buy essentials. For the time being, a typical gas and electricity bill is about £1,971 per year. Analysts at Cornwall Insight predict that an average energy bill will stand at £3,245 per year starting from autumn 2022. From January 2023, an average domestic customer will be charged as much as £3,364 per year. As utility bills will eat up a larger share of a household’s budget, the purchasing power of the population will decrease dramatically. In turn, a large number of households will be assigned to a low-income population. Therefore, due to soaring energy prices, millions of Britons could find themselves in the poverty trap. Struggling households will rely on the government which is widely expected to provide significant relief measures for this catastrophic winter.
Interestingly, those who earn £23,700 annually or £1,185 per month are officially classified as low-income people in Great Britain. This vulnerable stratum of the population has the right to apply for financial aid from the authorities. According to the UK Office for National Statistics, apart from soaring utility bills due to the energy crisis, British households complain about another squeeze on incomes from the rising cost of living on the back of runaway inflation.
