The impact of the energy crisis on UK households could be worse than the 2008 financial collapse, according to a report by Bloomberg.
Over half of UK households risk being pushed into energy poverty this winter by soaring bills that threaten suppliers with rising amounts of debt that simply can’t be repaid.
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The grim warning comes as bills are set to surge roughly 80% from October, just as the arrival of colder weather boosts energy demand.
Despite this the outgoing UK Prime Minister Boris Johnson has said households will have to endure the crisis to counter Russian aggression in Ukraine.
Summit News reports: A report citing data from the consultancy Baringa Partners warns that the soaring cost of electricity and gas bills would imperil the financial security of millions of households.
“The impact to society will be higher than the 2008 crash in terms of the impact on households,” James Cooper, a partner at Baringa, told Bloomberg.
“We’re now moving into territory where a majority of households are placed into debt or a very fragile financial position,” he added.
With soaring food prices helping to drive overall inflation to above 10% for the first time in 40 years, Brits are already feeling the financial pain.
But this will be massively exacerbated when average energy bills jump by 80% from October onwards to over £3,500 ($4,143), amounting to more than 11% of median household disposable income.
By next spring, energy bills are set to soar to £6,522, a level that threatens to push half of the country into fuel poverty.
Little wonder then that many observers are warning of widespread civil unrest unless the government takes radical steps in the form of financial bailouts.
One senior energy industry figure warned the government that when people “realize how bad this is going to get,” they could take their anger to the streets in the form of violent demonstrations.
However, this hasn’t stopped Prime Minister Boris Johnson approving a further £54 million pounds to be sent the black hole that is Ukraine.
Yesterday, Johnson said Brits should be prepared to make sacrifices in terms of higher energy bills to support the ‘current thing’ and prolong the war.
This winter will reveal just how many people are willing to make that sacrifice.
Meanwhile, Britain’s pubs face a “tsunami of closures” over crippling energy bills.
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