Behind the story: the cost of living crisis and war in Ukraine
Britain is more sheltered than other countries from the massive spike in energy prices that could unfold as a result of Europe’s overreliance on Russian gas.
Customers in the UK will at least in the short term be protected from higher prices by the energy price cap.
But if the cost of energy continues to spiral higher and higher, the price cap would need to be raised to prevent a situation we saw last year where energy providers go to the wall as they swallow the difference between what they can sell for what they buy it for.
Investec have said the energy price cap could be raised to as much as £3,000, petrol could soar to as high as £1.70 and inflation of the cost of goods could jump to 8.2 per cent.
A cost of living crisis at home could cripple how much support the UK is able to offer Ukraine, as the economy has only just started to recover post-pandemic.