Investing.com – Even before Brexit, many Britons were living on the edge of subsistence and struggling with exorbitant energy costs. Cold winters claimed tragic lives year after year due to hypothermia in poorly insulated homes. Thousands not only lost money, but also their lives. But since Brexit, the already dire situation has worsened dramatically.
- On our own behalf: Do you want to know how the most successful investors structure their portfolios? InvestingPro gives you access to the strategies and portfolios of top investors. In addition, you will receive over 100 stock recommendations every month based on AI-powered analysis. Curious? Click here for more information.
A recent survey by Citizens Advice shows that around a quarter of British households are so worried about their energy bills that they are considering going without heating or hot water for the coming heating season because they can only pay for one thing, food or energy.
This worrying trend was reinforced when it was announced that the national energy market regulator plans to raise the price cap on electricity bills by a further 9.2%, which would add an additional £150 (about US$195) to Britons’ bills.
Households with children and low-income families are particularly affected. According to Citizens Advice, 31% of households with children and 39% of low-income households are very worried about energy affordability. Almost half of those surveyed even said they would have to turn down the heating or turn it off completely to make it through the winter financially. In addition, 34% will struggle to afford food, mortgage payments or childcare, according to Oilprice.com reported.
While long-term plans to focus on renewable energy could reduce electricity bills, Citizens Advice called on authorities to take immediate action. The organisation specifically recommended that Keir Starmer’s government increase state support for energy costs for low-income households to help people in their time of need.
Energy consultancy Cornwall Insight predicted that electricity costs in the UK will average £113 per MWh this year – double the historical average.
It is a grim picture of a Britain that has struggled with escalating living costs since Brexit. This does not bode well for the British economy and if people had known what the real consequences of Brexit would be, many would have made a different decision.
