Energy Bills Could Soar Above £4,000 in April 2023

The government's Energy Price Guarantee, which limits the price that suppliers can charge for each unit of energy, was originally put in place for two years from 1 October.

Now it will only be in place for six months, covering this winter, with the Treasury reviewing the support given from April 2023.

Given the high and rising inflation, together with its price stability mandate, the Monetary Policy Committee has no choice but to rein in inflation by raising interest rates, embarking on quantitative tightening, and concentrating on communicating its stance over time more clearly.

Many consumers are turning to Twitter for help, with new types of communities born, focused on helping those survive the crisis, with money-saving tips and discount codes.

High energy and household prices are causing consumers to tighten their budgets. At the same time rising interest rates threaten to push up operating costs and allegations of insufficient transparency about debt and fees risks provoking a regulatory backlash.

The cost of living crisis is leading people into changing their long-term life decisions, rethinking everything from buying electric vehicles, to how they manage their retirement.

Millions of people up and down the country are feeling the pinch. 

With soaring energy bills and higher inflation, demand for credit is increasingly being driven by consumers with limited cash flows.

As always, economic downturns hit the poorest households the hardest.