Household energy debt in Britain has reached a record £6bn by the end of June, with projections indicating it could hit £7bn by the close of 2026. This increase coincides with the government's cap on gas and electricity prices, which is due to rise to a three-year high in October.
Prime Minister Andy Burnham previously announced the removal of VAT from electricity bills starting in October. However, the recently announced rise in the energy price cap, attributed to Middle East-related factors, is expected to negate the effect of this VAT cut.
Energy Secretary Miatta Fahnbulleh has reiterated the government's view that transitioning away from fossil fuels is key to reducing future costs. However, calls have been made for short-term solutions to support households facing unaffordable fuel prices, including a new social discount scheme and increased funding for local council emergency funds.