UK consumers suffer from energy costs as the recession approaches  

• Britain is preparing for more difficult times as the economy begins to contract and a new prediction indicates that average annual energy costs could top £5,000 ($6,000) in the coming year.
• According to official figures released on Friday, the nation’s GDP fell by 0.1% in the second quarter of this year.
• Later this year, the predicted high in inflation is 13%.

Britain is preparing for more difficult times as the economy begins to contract and a new prediction indicates that average annual energy costs could top £5,000 ($6,000) in the coming year.

According to official figures released on Friday, the nation’s GDP fell by 0.1% in the second quarter of this year. According to some observers, the Bank of England’s predicted recession has already started.

According to the Office for National Statistics, the loss was caused by a 0.4% decline in the service sector, primarily in the health services and wholesale and retail commerce.

Rising energy costs have already contributed to inflation reaching a 40-year high of 9.4% and leading consumers to reduce their expenditure. Later this year, the predicted high in inflation is 13%.

The average annual energy bill for millions of UK households is anticipated to reach £5,277 ($6,396) next spring after Ofgem, the nation’s energy regulator adjusts its price cap — the maximum amount suppliers can charge consumers per unit of energy. These projections were made public on Friday by energy research firm Auxilione.

The research company Cornwall Insight predicted earlier this week that the average household energy cost would reach £4,266 ($5,177) a year from January, or around £355 ($431) a month.

According to those statistics, the End Fuel Poverty Coalition (EFPC) predicted that after paying their energy bills, the incomes of approximately one-third of all UK households would be below the poverty line.

According to the Auxilione projection, gas and electricity will cost around £440 ($533) per month between April and June of the following year, when the price cap is scheduled to be raised once more.

Due to soaring wholesale costs, which were made worse by Russia’s invasion of Ukraine in late February, UK home energy rates have already increased by 54% this year.

The government launched a £15 billion ($18 billion) support package in May, which included a £400 ($485) payout to 29 million people starting in October.

Many anti-poverty groups, however, claim that the support does not go far enough as energy price estimates have continued to soar.

The most recent price estimate from Cornwall Insights indicated that the present level of government funding was only a “drop in the ocean,” according to Simon Francis, coordinator for the EFPC

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