Gaping £1,200 gap for worst-off families as January energy price cap estimates rise
Cornwall Insights has increased its forecast for the January 2023 energy price cap, up to £5,386 for the typical household energy bill. If as expected, this estimate is accurate, families are now facing a gaping £1,200 shortfall for energy costs alone in the months up to April 2023. This is an increase on Child Poverty Action Group’s original analysis which showed a shortfall of £1,000, if the January price cap hit £4,650.
On average energy bills for families with children are now predicted to increase by £2,400 by April 2023. The government’s cost of living support package typically only amounts to £1,200 at most for qualifying households on means-tested benefits. It also only consists of lump sum payments that do not reflect family size or need. So low-income families are facing a £1,200 shortfall on energy bills alone. And energy bills are just one component of the cost of living crisis families are facing.