Ofgem chief executive Jonathan Brearley has told MPs the regulator is expecting an energy price cap in October “in the region of £2,800”.
This very worrying rise in energy costs comes as MPs were told that MPs have been told Nurses are already relying on food banks and unable to pay rent.
Mr Brearley told the Business, Energy and Industrial Strategy Committee: “I am afraid to say conditions have worsened in the global gas market since Russia’s invasion of Ukraine. Gas prices are higher and highly volatile. At times, they have now reached over 10 times their normal level.
“I know this is a very distressing time for customers but I do need to be clear with this committee, with customers and with the Government about the likely price implications for October.
“Therefore, later today I will be writing to the Chancellor to give him our latest estimates of the price cap uplift.
“This is uncertain; we are only part way through the price cap window, but we are expecting a price cap in October in the region of £2,800.”
Ofgem’s prediction is a huge leap on April’s price cap increase of 54%, or an increase of £693 a year to £1,971 for those on default tariffs paying by direct debit for the average household.
Nurses
Nurses are “unable to pay rent” and are relying on food banks, MPs have heard.
The Royal College of Nursing said the nursing workforce is in a “critical situation”.
The warning comes as reports suggest that six NHS trusts have set up food banks for staff to help with the rising cost of living.
Dr Denise Chaffer, president of the college, said that pay is also linked to safe care for patients.
At a meeting of the Health and Social Care Committee, Dr Chaffer said: “The situation for nursing is really quite critical at the moment.
“We’ve got a huge problem with retention – the Nursing Midwifery Council published figures last week around the increase in nurses that are leaving the profession.”
She added: “Nurses that are not able to give safe care is very, very bad news for patients.
“Our concerns are particularly for the harm that could cause the patient by not having enough nurses. We don’t want to see any of the scandals we’ve seen in the past.”
Asked what could be done, she added: “We can’t get away from the fact of the pay issue – we have nurses that are unable to pay their rent, afford their petrol to get to work and they’re unable to get a mortgage.
“We’ve spoken to a number of members that just cannot get a mortgage, that are relying on food banks.
“Clearly pay is obviously critical and we can’t move away from that.”
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