Energy Boss warns 4 out of 10 households of energy poverty

A staggering 40 percent of households will live in fuel poverty if government sits on their hands while bills skyrocket, an energy company boss has warned.

“Some people are on the fringes and it’s getting worse,” said Michael Lewis, E.ON’s chief executive – also revealing that a third of its customers are cutting back on food spending.

Mr Lewis called for immediate government action but declined to say whether this was to be an unexpected tax on energy producers’ profits, amid a cabinet row over the controversy.

He called for the “broadest of shoulders” to shoulder the burden, telling the BBC: “The most important thing is that the government intervenes – it’s up to the government to decide how to fund that.”

Mr Lewis suggested the annual energy price cap could reach as much as £3,000 in the autumn, compared with around £1,200 paid by families before April.

Rishi Sunak has rejected calls to reverse his £20-a-week cut in Universal Credit payments, which was pushed through last year despite warnings of an imminent rise in inflation.

When asked if increasing utility was a solution, Mr. Lewis replied: “Definitely it will help those at the lower end of the income bracket who will be hit hardest.”

Analysts have warned that Britain is heading for the worst slump in living standards since the 1950s and an explosion in poverty that will push 500,000 more children below the poverty line.