London Daily

Focus on the big picture.
Tuesday, Jun 02, 2026

Energy bills after Truss freeze will eat up as much as 32% of budget for poorest

Energy bills after Truss freeze will eat up as much as 32% of budget for poorest

Recalculations made for the Guardian are based on Ofgem and ONS data, and follow announcement of bailout

The move to freeze energy bills at an average of £2,500 a year means the poorest households will spend as much as 32% of their entire budget on gas and electricity, though the previously announced £400 discount will help relieve some of the financial pain, figures produced for the Guardian show.

However, up to 47% of their total budget would have been swallowed up by energy bills if Ofgem’s price cap had leapt 80% to £3,549 a year in October, as was originally planned.

The latest calculations were done by the investment platform Interactive Investor on Thursday after the government’s announcement of a bailout, and are based on figures from the energy regulator and family spending data from the Office for National Statistics.

Interactive Investor originally crunched the numbers on 26 August, the day Ofgem announced the £3,549 price cap. On Thursday, the platform reran the calculations to reflect the bailout.

Alice Guy, a personal finance expert at Interactive Investor, says that while many Britons would breathe a sigh of relief, a lot of families would end up paying more, or less, than the £2,500 figure in the headlines. The cap is what an household consuming the average amount of energy on a dual-fuel tariff would pay. Larger households and those with bigger or poorly insulated properties consume more energy and could end up paying perhaps £3,400 or more, she adds.

The recalculated figures can be compared against ONS family spending data for 2021, when energy spending accounted for 8% of the total household budget for those in the poorest decile of the population, 6% for those on middle incomes (the fifth income decile) and 3% for the richest households.


Small house or flat with one or two people


The recalculations show that for those in the bottom-income group, the amount they typically spend on energy as a proportion of the total household budget will now rise to 16%. Without the freeze, and assuming the 80% price cap rise had gone ahead on 1 October, it would have been 23%.

For a middle-income family it will now be 8%, rather than 11%, while for those in the top income decile, it will be 3%, instead of 5%.


Medium house with two or three people


For those in the bottom 10% by income, energy will now typically swallow up 23% of their total household budget (it would have been 33% under the Ofgem price cap).

For those in the middle-income bracket, it will be an estimated 11% (instead of 16%). For the most financially comfortable households it will typically be 5% (instead of 7%).


Larger house with four or more people


For those in the bottom income group, a larger property and more people is likely to mean that more energy is used, thus bigger bills.

The calculations indicate that almost a third – 32% – of their total household budget will now be swallowed up by energy costs (it would have been 47%).

For a middle-income household, the new percentage will be 16% (instead of 23%). For those in the very top income bracket – who are most able to withstand bill shocks – the new figure is estimated to be 7% (instead of 10%).

Newsletter

Related Articles

0:00
0:00
Close
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×