Rising gas prices could push the cost of energy bills to £6,552 next year with inflation expected to peak at 18%, according to two forecasts. Consultancy firm Auxilione estimated that gas and electricity bills could reach £6,552 for the average household from April. Analysts at top investment bank Citigroup, meanwhile, predicted that inflation – driven mainly by soaring energy bills – could hit a staggering 18% early next year. Energy regulator Ofgem will make an announcement on Friday about the latest price cap increase, which will come into effect in October. The expected autumn rise to £3,554 would leave average household bills 80% higher in the colder months when energy use soars. EDF chief executive Philippe Commaret said half of UK households could be in fuel poverty in January as a result of soaring energy prices, as he warned of a “dramatic and devastating winter”.

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What does inflation mean to you?

You’ve probably heard a lot about inflation in the last 24 hours. But what does it mean in practice, for the everyday lives of people and households across the UK? My colleague Joe Sommerland takes a look:

What does inflation mean to you?

Cost of living crisis continues to hit as energy bills, fuel and food prices rise Matt Mathers August 23, 2022 2:50 pm 1661261415

Liz Truss ally ‘seriously considering’ crisis fund plan to keep energy bills down, industry boss reveals

Business secretary and key Liz Truss ally Kwasi Kwarteng is “seriously considering” a plan for a crisis fund to keep energy bills under control, according to the head of Scottish Power. The companies’ chief executive, Keith Anderson, said he had proposed that a government-backed fund could provide loans to energy companies to freeze prices – with the cost then repaid over the next 15 to 20 years. Our political correspondent Adam Forrest reports:

Liz Truss ally ‘seriously considering’ energy fund plan, industry boss reveals

Scottish Power chief encouraged meeting with Kwasi Kwarteng – tipped to be next chancellor Matt Mathers August 23, 2022 2:30 pm 1661259903

ICYMI: How long can we expect the cost of living crisis to last?

Real wages are falling at a record pace, with worse yet to come according to economic analysts. Ben Chapman asks if there is hope for abandonment. Read Ben’s full article here:

How long can we expect the cost of living crisis to last?

Real wages are falling at a record pace, with worse yet to come according to economic analysts. Ben Chapman asks if there is hope for abandonment Matt Mathers August 23, 2022 2:05 pm 1661259033

A former Tory Lord Chancellor has questioned Liz Truss’s understanding of legal aid when she served as Justice Secretary. The attack on her authority, by a senior member of her party, comes as the front-runner to become the next prime minister looks set for a fresh row with lawyers. Whitehall editor Kate Devlin reports:

The criticism comes from a senior conservative colleague Matt Mathers August 23, 2022 1:50 pm 1661258115

The Treasury has been asked to reveal whether it is preparing for Liz Truss’ crisis budget in the row of scrutiny

The Treasury is being asked to reveal whether it is preparing for Liz Truss’ “emergency budget” in the growing row over whether the Tory leadership favorite is avoiding scrutiny. The potential next prime minister has indicated she will not ask an independent watchdog to give its verdict on the £30bn tax cut package she plans within weeks of taking office. Our deputy political editor, Rob Merrick, reports:

The Treasury told to reveal preparations for Liz Truss’s crisis budget in the series of audits

Senior Tory says chancellor should help watchdog to ‘publish independent forecasts’ on economic impact of huge tax cuts Matt Mathers August 23, 2022 1:35 p.m 1661257105

Liz Truss’ economic policy ‘more Ted Heath than Margaret Thatcher’, says IFS chief

Liz Truss’ economic policy is more like that of Ted Heath than Margaret Thatcher, the director of a leading think tank has said. The Tory front-runner plans to cut taxes and increase the budget deficit in the face of high inflation – amid warnings it could drive prices even higher. Political correspondent Jon Stone reports:

Liz Truss’ economic policy ‘more Ted Heath than Margaret Thatcher’, says IFS

The comparison is likely to irk the Tory frontrunner, who is modeled after Britain’s first female prime minister Matt Mathers August 23, 2022 1:18 p.m 1661256015

What does the energy price cap mean to you?

You’ve probably heard and read a lot about energy price caps in recent months. The price cap is expected to rise again on Friday, when Ofgem makes its latest announcement. But what is it and how does it affect individual households. My colleague Joe Sommerlad takes a look:

What does the energy price cap mean to you?

Rising global gas prices cause dramatic rise in household bills in 2022 Matt Mathers August 23, 2022 1:00 p.m 1661254815

Who gets the £400 energy rebate and winter fuel payment?

Households will start receiving money on their energy bills from October. Vicky Shaw knows who gets what and when:

Who gets the £400 energy rebate and winter fuel payment?

Households will start receiving money on their energy bills from October Matt Mathers August 23, 2022 12:40 p.m 1661251815

All help with living costs available and how to get paid

Former chancellor Rishi Sunak announced a series of new measures after criticism that the government was not doing enough to tackle financial difficulties. My colleague Zoe Tidman takes a look at the help available:

All the help with living costs you may be entitled to and how to get the payments

Former chancellor Rishi Sunak announced a series of new measures after criticism that the government was not doing enough to tackle financial difficulties Matt Mathers August 23, 2022 11:50 am 1661251685

Energy price rises again to £6,552 – new forecast

A rise in gas prices on Monday added almost £500 to the projected energy price cap for next year – heaping further misery on families who will already struggle to keep the heating on. Experts now expect the energy price cap to be set at £6,552 in April, based on Monday’s gas price. Prices soared as markets opened on Monday after Russia said it would carry out maintenance on a key natural gas pipeline linking the country to Germany. “Market nervousness seems to be increasing by the day as we get closer to winter delivery, now just five weeks away, and there is no big positive news on the horizon,” Auxilione said. “Planned outages over a week have caught the market’s attention and are causing further concern – as evidenced by yesterday’s market activity.” Matt Mathers August 23, 2022 11:48 am