Millions of people will now feel the effects of an unprecedented increase in energy costs of £700 a year – along with a multitude of bill hikes.
The 54% rise in the energy price cap means a household using a typical amount of gas and electricity now has to pay £1,971 a year.
A further increase, pushing the annual bill to £2,600, should be expected in October, an analyst told the BBC.
Council tax, water bills and vehicle tax will also increase on April 1 for some.
Minimum wages are rising, which, combined with some government financial support, is partially softening the blow.
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The increase in a typical energy bill of £693 a year will affect 18 million households, with 4.5 million customers with prepayment meters facing an even bigger increase of £708 a year.
Among them is Winston Carrington, a grandfather in his 70s who said he grew vegetables in the garden of his Manchester home to help alleviate the effects of the rising cost of living.
“I’m going to grow, and I’m going to stock my freezer with my own produce this year. I’ll have to do it,” said Mr Carrington, who uses a prepayment meter.
“I can’t go away this year, not because of Covid or anything. I just can’t afford to go away. The state pension we get at the moment doesn’t cover what I need.”
Prices are generally rising at their fastest pace in 30 years, but the sudden rise in energy costs is most significant for individuals. A number of vendor websites have struggled to deal with this, with customers providing meter readings to ensure they weren’t paying more than was strictly necessary.
Dame Clare Moriarty, chief executive of Citizens Advice, said: “Raising the energy price cap will be potentially ruinous for millions of people across the country. It is another grim new record for people who need crisis support from us.”
Bank of England Governor Andrew Bailey said the country was facing the biggest single energy price shock since the 1970s. It is by far the largest increase in energy regulator Ofgem’s price cap since it was introduced.
The cap set every six months for England. Wales and Scotland is designed to protect household consumers from volatility in wholesale energy prices.
However, official forecasters and analysts have warned people to brace for another huge surge in energy bills when the next cap comes into effect in October. Wholesale prices were impacted by the war in Ukraine and continued pressure on suppliers.
That could add a further £629 to a typical October bill, according to the latest forecast provided to the BBC by leading energy consultancy Cornwall Insight.
If this proves correct, then next winter’s average bill would be double what it was last winter. A typical bill is expected to revert to current levels in the summer of 2023, although longer-term forecasts are difficult.
Chris O’Shea, chief executive of Centrica, which owns Britain’s largest supplier British Gas, said his company supports struggling customers and makes grants to those most in need.
“We would like to do more. The reality is that for an energy retailer the market has gone through quite a change and profits have fallen significantly,” he told the BBC’s Big Green Money show.
However, he did accept that profits for the company’s heavily taxed exploration arm had risen sharply.
“If you’re feeling stressed or concerned about your financial situation, it’s important to know that you are not alone and that help is available,” said Helen Undy, executive director of the Money and Mental Health Policy Institute.
“There is no debt problem that cannot be fixed with the right support. If you’re struggling to keep up with bills, there are many free debt counseling organizations that can help,” she said.
“Similarly, it’s important to seek help when your finances start taking a toll on your mental health.”
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Council taxes and water bills are also increasing for many people, in addition to the rising cost of groceries and household items.
One estimate puts a typical consumer now facing an increase in bills of £73 a month, of which around £58 is due to rising energy costs.
“The additional cost pressures that will come into play in April threaten to wipe out even the finely tuned budgets.” said Myron Jobson, senior personal finance analyst at Interactive Investor.
Low-income earners, renters, parents, people with disabilities, the unemployed and the divorced are the least able to afford a bill shock, the Bureau for National Statistics said.
Even before the latest increases, charity Citizens Advice said it referred 24,752 people to food banks or other charities in March, a 44% increase from the same month last year.
The Government has said it is taking “decisive action” to help people with the cost of living, including a £200 reduction in energy bills in October – which will have to be paid back in installments – and a £150 reduction in council tax bills, 80% of the bill payer.
Chancellor Rishi Sunak told the BBC news program: “I am confident in what we have done. I know it’s hard for people. We’re facing a very difficult situation where prices are going up and I want to do what we can to improve some of it, but I’ll also be honest with people that unfortunately we can’t improve everything.”
Around 2.5 million workers in the UK have received a pay rise, with new rates for the national minimum wage and national living wage. The latter has increased by 6.6% to £9.50 an hour for workers aged 23 and over.
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