(PresidentialWire.com)- According to Bloomberg, the impact of the UK’s energy crisis on consumers could be even worse than that of the 2008 financial meltdown.
The financial security of millions of homes would be in jeopardy due to the rising cost of electricity and gas, according to research using statistics from the consultant Baringa Partners.
According to James Cooper, a partner at Baringa, “the effect on society will be higher than the 2008 catastrophe in terms of the impact on homes.”
He said we’re now entering terrain where the majority of households are forced into debt or are in a very precarious financial position.
Brits are already feeling the financial pinch as rising food costs contribute to overall inflation reaching beyond 10% for the first time in 40 years.
But when average energy costs increase by 80% starting in October to over £3,500 ($4,143), or more than 11% of median household disposable income, this will be significantly worsened.
Energy costs are expected to rise to £6,522 by next spring, which may force half of the country into fuel poverty.
So it should be no surprise that many commentators are predicting major civil unrest in the absence of radical government action in the form of bank bailouts.
When people “realize how awful this is going to get,” one senior member of the energy sector warned the administration, they might vent their rage through violent protests.
This hasn’t stopped Prime Minister Boris Johnson from accepting the transfer of an additional £54 million to the Ukrainian black hole.
Johnson previously stated that Brits should be ready to make energy cost concessions in order to support the “present thing” and continue the war.
How many people are willing to make that sacrifice will be made clear this winter.
Britain’s pubs are currently facing a “tsunami of closures” due to exorbitant energy costs.
According to a study conducted by the trade newspaper The Morning Advisor, “70% of respondents claim they will be unable to operate and forced to close up shop” if electricity rates continue to rise.
