The Rise of Energy Bills
Date published:
Rachel Anderson, Assistant Director of policy, North East England Chamber of Commerce said: “The impact of the energy price rises falls on households but will also hit businesses. Whilst the price cap doesn’t apply to businesses and they are already facing increased bills of their own, a shock such as this, will impact their workforce and customer base with serious knock-on effects.
“It is likely to impact most consumer facing sectors, retail and hospitality as these sudden increases in bills mean less discretionary spend for households. These sectors are already trying to get back on their feet and face huge cost increases. This fact, coupled with less customers, is not a good mix for their recovery. Smaller firms are also particularly exposed as they have neither the protections or financial support provided to households, nor do they have the negotiating power of larger businesses.”
“Even for those in business to business sectors there will be a consequence, most likely in the form of wage pressures. This comes again on top of huge cost increases, labour shortages, transport costs including the ending of red diesel in April which will add more expenditure. Workplace and hidden poverty could be huge and the mental health strain can manifest itself in the workplace. Figures suggest a third of NE households are set to be in fuel stress
“There are many manufacturing chains’ products that end up with the consumer. Less money, less custom which is not good news for anyone.”
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EDITORS NOTES:
The share of English households experiencing ‘fuel stress’ (i.e. spending more than 10 per cent of their household budget on energy) will triple. One-third (33 per cent) of households in the North East are set to be in fuel stress, compared to 20 per cent of those in London come April (up by 24 and 13 percentage points respectively)