Families facing a “cost crisis”, including rising gas and electricity prices, could in April be able to avoid a £ 100 tax on their bills aimed at reimbursing the company’s recent financial failure.
Ofgem, the energy regulator, is looking to spread the cost of retailers who have failed over time, according to the people who briefed them on the situation.
Boris Johnson, the Prime Minister, and the prime minister will reconsider the issue to help families facing the worst of pressure in 2022, according to government officials. More pain is expected to come in April.
Ofgem announced last week that it would offer £ 1.8bn in payment to sellers which took the customers of those who failed to help them get more money.
The price is expected to appear on house bills in April. The Resolution Foundation think tank says an additional £ 100 per household bill may be needed.
Experts predict that the annual debt will end up to £ 2,000 from April when the price of electricity will be adjusted by Ofgem. The cap has been set at $ 1,277 per home since October, based on average drinking.
Ofgem said Wednesday that it “has been working to find a solution by companies and the government on the transfer of all value to home loans, so this has reduced consumer engagement since April 2022”.
Kwasi Kwarteng, business secretary, has promised to continue negotiations with the industry and Ofgem – finding ways to reduce stress on companies and consumers – after a special meeting Monday.
Electricity regulators have been pushing for a range of solutions, including a 5 percent reduction in tariffs and support for high-risk households. Another idea is another way to set prices to reduce the rise in oil prices.
“The rate at which high energy prices are changing is a problem,” said one expert on the subject. “There is a growing awareness that there is a need for improvement on the major measures we have seen in the last four months.”
Families are already experiencing higher inflation and interest rates and lower real wages, but in April they will be affected by an increase in national insurance and a sharp rise in energy debt.
The Resolution Foundation estimates that their income will be $ 1,200 per family in April. Torsten Bell, executive director of the Resolution Foundation, said: “Often the challenges of everyday life are so complex that it is difficult to see how the government is preventing interference.”
Officials have said No. 10 and the Treasury will consider how to deal with the upcoming disaster when Johnson and prime ministers meet again after the New Year’s holiday. One said: “This is a matter for concern of all spheres of government.”
Rishi Sunak, Chancellor, wants to improve spending to cut pre-election taxes from its full size since 1950; instead they are under great pressure to provide new financial assistance to families.
Some of the suffering comes from Sunak himself; Income tax and income limits will be stopped by cash and national insurance will increase by 1.25 percent of workers and employers, and increase income tax by 2.5 percent.
With official figures showing regular pay rises up 4.2 percent in the year to October, inflation falls below the consumer price target, which rose to 5.1 percent in November.
The Bank of England expects annual interest rates to rise by 6 percent by April, although many economists expect higher prices for the month’s sharp rise in energy bills.
With the same inflation, real wages are expected to fall and even a sharp 6.6 percent increase in low wages from £ 8.91 to £ 9.50 in April will not be much higher than the costs required to pay inflation.
Government pensions for retirees will rise in line with the inflation rate for CPI from September – 3.1 percent, leaving their earnings to fall sharply, until they are raised again in 2023.
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