Millions pushed into ‘fuel stress’ as energy price cap jumps Business

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UK households are now facing a cost of living crisis as the energy price cap rises by more than 50%.

Average household energy bills will rise by £693 over the next year due to the sharp rise in wholesale prices.

An analysis by the Resolution Foundation found that this would double the number of English households suffering from energy poverty to 5 million. A further 2.5 million families will be exposed to ‘fuel stress’ (spending at least a tenth of household budgets on energy bills) if the price cap jumps again in October, as forecast by official forecasters.

It comes days before a National Insurance tax hike that will further strain budgets, while soaring inflation is already driving up consumer prices.

Overall, the average family will be £1,100 worse off over the next 12 months, according to the Resolution Foundation.

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What happened overnight

Asian stocks were mostly weaker on Friday as a resurgence in Russian attacks dashed hopes for a quick end to the war in Ukraine.

The retreat followed a broad decline on Wall Street, which closed its worst quarter since the pandemic hit two years ago.

Japan’s benchmark Nikkei 225 slipped 0.7pc in morning trade to 27,618.27. Hong Kong’s Hang Seng lost 0.8pc, while the Shanghai Composite added 0.9pc.

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• Business : Flame (commercial update)
• Economy: Manufacturing PMI (UK, US, EU); inflation (EU); non-farm payroll, unemployment rate (WE)