Energy crisis may have bigger impact on households than 2008 crash

Energy crisis may have bigger impact on households than 2008 crash

More than 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.

The crisis could have a bigger impact on households than the 2008 financial crisis, according to consultancy Baringa Partners. The bleak warning comes as bills are set to surge roughly 80 percent from October, just as the arrival of colder weather boosts energy demand.

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Winter energy bills are expected to be more than triple what they were a year ago. That will further stretch consumer budgets being hit by a wider cost-of-living crisis that’s stoking fears of a recession and prompting calls for the government to offer more help.

“The impact to society will be higher than the 2008 crash in terms of the impact on households, said James Cooper,” a partner at Baringa. “We’re now moving into territory where a majority of households are placed into debt or a very fragile financial position.”

Average annual energy bills are forecast to exceed £3,500 ($4,140) from October 1, when a new price cap kicks in. That’s more than 11 percent of