UK ‘worst hit’ in Western Europe by energy crisis, says IMF

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Gas reliance could be costing the UK this winter - the IMF has said  (PA Wire)
Gas reliance could be costing the UK this winter - the IMF has said (PA Wire)

The energy crisis is hitting UK households harder than any other western European nation, research has found.

A study by the International Monetary Fund has also shown the difference between the cost burden on poor and rich households is far more imbalance than in other countries.

The fund has said the UK is paying the price for having energy inefficient homes compared to other European nations and a comparatively heavy reliance on gas to heat homes, the Guardian reported.

Russia’s invasion of Ukraine has forced much of the continent to change its policies on energy consumption - with Britain reportedly trailing other nations for use of renewable sources.

The International Monetary Fund data has shown that average UK households have a projected 8.27 per cent total cut in spending power due to having to spend more on energy bills , ahead of the Netherlands and Malta. At the other end of the scale, Portuguese families will only see a 4.24 per cent fall.

Oya Celasun, chief of the world economic studies division, from the fund said: “The distributional impact is especially skewed [in the UK].”

She described how the poorest 10 per cent of UK households are expected to spend 17.8 per cent of their budget on energy in 2022, while the richest 10 per cent will spend 6.1 per cent.

This is the largest gap between extremes in Europe - as reported by the fund - with the 11.7 percentage point gap shamed by the 3.9 and 2.5 seen in France and the Netherlands respectively.