August 12, 2022
Legal and General’s CEO Nigel Wilson described the UK’s cost-of-living crisis as “a tragedy for many, many people.”
The typical household is expected to spend the equivalent of £4,266 on energy each year from January.
Prime Minister Boris Johnson’s spokesperson said it would be up to his successor to make decisions on the matter.
A soaring energy price cap and skyrocketing rental prices are just two factors contributing to the United Kingdom’s escalating cost-of-living crisis, which Legal and General CEO Nigel Wilson describes as “a tragedy for many, many people.”
People are “finding life really difficult with rising energy prices, rising food prices, and a horrible background for many people as they struggle to pay their bills,” Wilson said on CNBC’s “Squawk Box Europe.”
According to management consultancy Cornwall Insight, energy bills are expected to exceed £4,200 ($5,088) per year beginning in January. Meanwhile, according to Zoopla, a property website in the United Kingdom, rent prices are up 11% year on year.
According to Cornwall Insight, the January tariff cap will rise by more than £650, leaving the average household paying the equivalent of £4,266 per year for the first three months of 2023.
Forecasts for the October 2022 price cap have also risen by more than £200, resulting in an average annual bill of £3,582.
In October 2021, the price cap set by regulator Ofgem was £1,400 per year.
According to the most recent energy price cap predictions, the End Fuel Poverty Coalition predicts that 9.2 million U.K. households (28.4 percent) will be in fuel poverty as of October 1, rising to 10.5 million (32.6 percent) by January 1.
The estimates are also fueling Don’t Pay UK, a campaign encouraging people to cancel their energy bill direct debits on October 1 if the United Kingdom government fails to act to reduce costs “to an affordable level.”
According to the campaign website, more than 94,000 people have pledged to strike so far.
According to Zoopla, U.K. rental prices increased by 11% in May over the same month last year, with London rent costs rising by 15.7%.
According to the property site, robust demand is driving prices, especially in city centers, but rising prices will start to put a cap on further rental growth.
Source: CNBC
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