Annual inflation in the UK reached 11.1% in October 2022, a 41-year high, before easing in subsequent months, according to the House of Commons Library1. The same month brought a second large increase in domestic energy bills, with typical household energy bills up 27% in October 2022, following a 54% rise in April 20221.
The two increases together meant typical household energy bills stood far above their previous levels. The Library reports that lower wholesale prices have since led to falls in prices, but that current bills are still 43% above their winter 2021/22 levels1. It also states that energy prices have fallen since summer 2023 but remain well above pre-crisis levels, with little prospect of large cuts to bills in the near future1.
To help households with the rising cost of energy, the UK Government's Energy Bills Support Scheme provided a £400 discount on electricity bills1. The scheme was first announced in February 2022 and updated in May and July 20221. The Library's briefing on the scheme sets out eligibility and answers frequently asked questions1.
On supply, the Library reports that the UK imported no coal, oil or gas from Russia in January 2023, and that the total value of UK fossil fuel imports from Russia fell after Russia launched its full-scale invasion of Ukraine in 2022, standing at £1.34 billion in the year to January 20221.
"The annual rate of inflation reached 11.1% in October 2022, a 41-year high, before easing in subsequent months."
The inflation rate later reached the Bank of England's target of 2.0% in May 20241. The Library's overview of the period covers household incomes, spending, poverty, savings and debt, and notes that the high inflation period from 2021 to 2024 continues to affect households1.
Why it matters for households
The October 2022 figures mark the point at which the cost of everyday goods and the cost of energy peaked together. For a household, the two are linked: money spent on gas and electricity is money not available for other bills, and the 54% and 27% increases in typical bills arrived within six months of each other1. The £400 discount under the Energy Bills Support Scheme was applied to electricity bills, so it reduced the amount owed rather than changing the underlying unit price1.
Energy independence for a home is shaped by how much of its energy it buys in and at what price. The Library's figures show that, even after wholesale prices fell, bills remained 43% above winter 2021/22 levels1, so the reduction in running costs lagged the reduction in wholesale prices. The Library also reports no UK imports of coal, oil or gas from Russia in January 20231, a change in where supply comes from rather than in how much a household pays.
Official statistics on prices and energy are published through the Official UK Energy Statistics: Energy Trends, Quarterly Energy Prices and the Release Calendar, and the wider market-data hub collects this reporting.
What happens next
The Library records that inflation reached the Bank of England's 2.0% target in May 20241. It states that energy prices have fallen since summer 2023 but that there is little prospect of large cuts to bills in the near future1. No further dated steps are given in the material.
Sources1 cited
- Cost of living and inflation, commonslibrary.parliament.uk