UK energy debt hits high

UK energy debt hits high

 Energy debt is expected to rise to 82% in October. Millions of people are threatened with poverty if the government does not immediately provide multi-billion pound support assistance to overcome these problems. As quoted from Reuters on Wednesday (10/8/2022), energy bills rose by 54% in April. 

Even consumer website Uswitch says this energy debt totals 1.3 billion pounds and already exceeds the amount owed in September last year. The British government is being hit by an energy debt problem that is now reaching an all-time high. A total of six million households in the UK are already in debt to energy providers, with an average of 206 pounds or the equivalent of $249. A quarter of UK households now owe 206 pounds, an increase of 10% in just four months. According to Uswitch's statement in Reuters, these 8 million households no longer have credit balances. 

This issue is also the toughest challenge for the two political candidates who are competing to become British ministers on 5 September. In recent days, Foreign Minister Liz Truss and former Finance Minister Rishi Sunak have been looking for ways to support the community on this issue. Truss is still adamant about proposing tax cuts that would help families. A similar move by Secretary James Cleverley is seeking to benefit energy company leaders and will review the energy producer's income tax. 

The UK government has imposed an unexpected 25% tax on oil and gas producers in May. This can help fund support packages for households. Since then, wholesale gas prices have more than doubled. "The energy cost implications have changed and, of course, as a responsible government, we need to constantly review the situation," Cleverley, a Truss supporter, said via Reuters on Wednesday (10/8/2022).

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