Unless you’ve been living under a rock, you cannot deny the impact that rising energy prices are having on our cost of living, especially with the talk of eye-watering figures on the horizon.

Things are particularly looking bleak for this winter where gas is expected to be in high demand and yearly energy prices per household could rise to double that of what they were last year.

As a response, increasingly more conversations are being had about staging market interventions as an attempt to delay the inevitable struggles that households will face in the upcoming months.

Some of the suggestions have tackled the ideas of breaking a link between expensive imported gas and high consumer bills or swapping to more sustainable and renewable energy sources, while others have been more technically, legally and politically ambiguous.

For example, the general public has taken to Instagram, calling for a nationwide bill payment refusal in October as an attempt to stand up to those in decision-making positions and show energy providers that the prices they’re asking for are simply not okay. It’s an idea fuelled by passion and the desperation to stop these rises, but also one that poses several moral and legal concerns.

You also have others suggesting more time-consuming expensive solutions that involve breaking out of long-term contracts with existing providers and opting for energy that is simply lower in price. It’s a simple theory or a logical idea to come to, but one that’s also complicated when broken down and involves many steps and technical and logistical issues.

The ideas are admirable and make sense, but implementing such changes is easier said than done.

With that being said, these discussions have been had for months with patience wearing thin as the Government’s approach thus far has made little difference. However, could the newly appointed Prime Minister, Liz Truss’ plans, be the answer to our rightful concerns?

Barely days into her new term as Prime Minister, Liz Truss announced that the Government will be actioning an energy price guarantee that will see the Government limit the 80% rise in domestic bills that was in the pipeline for October, and they will do this by limiting the prices a supplier can charge for every unit of energy.

This guarantee will last two years and the amount you will actually pay will depend fully on the amount of energy you use – the yearly average household bill is expected to be £2,500.

However, this energy price guarantee will still see standing charges face a rise in October.

You will not need to pay the discount back directly, but the Government will be paying for it by using borrowed money which will in turn increase the nation’s debt and could push us further towards a recession which has been looming for some time.

They will also continue to provide cost-of-living payments as mentioned earlier in the year.

As of September, the first installment of £326 has been paid to low-income households on certain benefits and tax credits, and a further £400 will also be distributed to households via installments over the next 6 months from October.

The payments are only predicted to happen this year, which could still mean that in a year’s time, households may struggle more again.

Our Final Thoughts

The cost of living in the UK is expected to get worse over the next year and with many houses already feeling the strains of a stretched budget, October’s rising energy prices (again) is worrying.

The general public has been calling for help from people in positions of power and when left unanswered, have started to think about how to overcome it themselves. Some options made sense, however, logistically they were impossible to put into place and others fell into a legally and morally grey area.

Having said that, shortly after the newly appointed Prime Minister began her term, some answers did come.

Liz Truss, the new Prime Minister, announced the Government’s plan to offset the forecasted October cost increase by implementing an energy price guarantee for the next two years which comes alongside the already promised cost-of-living payments which houses will also be seeing this winter.

But, is this too little, too late? Many people would answer yes.

If you’re concerned about your finances and worried about the current cost of living in the UK, our Coffey Brooks Team of Financial Advisers are here for you.

For non-judgemental, tailored financial advice for every situation, contact our Essex-based team of IFAs today.

Coffey Brooks are a team of Independent Financial and Mortgage Advisers based in Clacton-On-Sea, Essex and are directly authorised and regulated by the Financial Conduct Authority.