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Daily Mirror
Daily Mirror
Ben Glaze

Families brace for 'groundhog year' as energy bills to soar by £900 and pay drops by 4%

Energy bills are set to soar by £900 in 2023, experts warn as they brace families for "groundhog year".

Resolution Foundation analysts predict annual dual fuel costs for households will hit £2,450.

And the think-tank said pay will continue falling in real terms until the second half of 2023 as inflation outstrips wage increases.

Real household disposable income fell by 3.3%, or £800 per household, over 2022 – the biggest annual fall in a century.

In its New Year Outlook, the Foundation said: “Things will get significantly worse for households, who are set for a further squeeze in their living standards.

"Incomes are forecast to fall by 3.8% – an even bigger fall than in 2022."

Experts warn energy bills are set to soar by £900 in 2023, as they brace families for "groundhog year" (WALESONLINE)

Inflation hit 11.1% in October and only fell back to 10.7% last month.

While the household energy price cap will remain in place, it will become less generous with typical bills capped at £3,000 a year instead of £2,500.

The Foundation added: “The typical household energy bill is set to rise to £2,450 in 2023, up from £1,550 in 2022.”

Torsten Bell, chief executive of the think-tank, said: “2023 should see the back of double-digit inflation, but it looks set to be a groundhog year for many families whose incomes look set to fall by just as much as they did in 2022.”

Shadow Chancellor Rachel Reeves said: “Instead of the Tories’ failed approach, Labour would provide the strong leadership and stable economy our country needs."

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