Families prepare for 'year of the groundhog' as energy bills soar by £900 and wages fall by 4%

The Resolution Foundation think tank has warned that revenue is set to fall 3.8% in its New Year outlook, while the electricity bill typical household energy expected to increase to £2,450 from £1,550

A volunteer stocks shelves at a food bank in Cardiff on November 8 (

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Energy bills are set to soar by £900 in 2023, experts warn as they prepare families for 'the year of the groundhog'.

Resolution Foundation analysts predict annual dual fuel costs for households will reach £2,450.

And the think tank said wages would continue to fall in real terms through the second half of 2023, with inflation outpacing wage increases.

Real household disposable income fell by 3.3%, or £800 per household, in 2022, the biggest annual fall in a century.

In its New Year's outlook, the Foundation said, "Things will get significantly worse for households, who are poised to further reduce their standard of living.

“Revenues are expected to fall 3.8%, an even bigger decline than in 2022.”

Experts warn energy bills are set to soar by £900 in 2023 as they prepare families for 'the year of the groundhog' (

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Inflation hit 11.1% in October and only fell to 10.7% last month.

While the household energy price cap remains in place, it will become less generous with typical bills capped at £3,000 per year instead of £2,500.

The Foundation added: "The energy bill for a typical household is expected to rise to £2,450 in 2023, from £1,550 in 2022."

Torsten Bell, chief executive of the think tank, said: "2023 should see the back of double-digit inflation, but it looks like a groundhog year for many families whose incomes are set to fall. .