Household energy prices to jump by 13% from July

Susannah Streeter, chief investment strategist, at Wealth Club, said: “The rise in the energy price cap in the UK from July is set to weigh on already fragile consumer confidence. Household energy prices will rise by 13% due to soaring wholesale costs, a highly unwelcome change, just as bills had been reducing.

“Regulator Ofgem says a household using a typical amount of gas and electricity will pay £221 more a year, taking the annual bill to £1,862. The increase is likely to deepen pressure on household finances just as many consumers had started to feel some relief from the cost-of-living squeeze.

“Higher energy costs are expected to leave households with less money to spend on everything from eating out and holidays to wardrobe upgrades, raising fresh concerns for retailers, hospitality businesses and the wider services sector, which relies heavily on discretionary spending.”