Households in Britain could face a 25% surge in energy bills by January, potentially ushering in the worst energy crisis since the 1970s, This is Money's Simon Lambert stated on the Daily Mail's Deep Dive podcast.
Lambert suggested that politicians and consumers alike may have become complacent about the severity of the situation. "We may have lulled ourselves into a false sense of security here," he said, noting that while some costs were recently removed from bills, this artificially lowered them. He warned that natural gas prices have reached a three-year high, with storage levels significantly lower than usual for this time of year, signaling potential trouble for the winter.
The global energy market has seen significant turbulence in recent weeks. Ukraine conducted its largest drone assault on Moscow's main oil refinery, and Iran-backed Houthi rebels have increased their control over the Bab el-Mandeb Strait, a crucial route for Saudi Arabian oil exports. Lambert indicated that Asia's reduced access to liquefied natural gas from the Middle East could force them to seek supply elsewhere, driving up prices globally.
Defense Editor Mark Nicol, also on the podcast, expressed concern over the lack of immediate relief. He pointed to ongoing conflicts and the actions of leaders like Vladimir Putin and Donald Trump as contributing factors to the instability. "Putin and Trump are wedded to the outcomes of these conflicts," Nicol stated, suggesting their personal involvement prolongs the issues.
Lambert suggested that the looming energy bill hikes could prompt a political gamble in the UK, potentially leading to an early general election. He noted that the Labour party's manifesto pledges not to raise income tax, National Insurance, VAT, or corporation tax could leave the government ill-equipped to handle the economic fallout. "There is a strong economic case for going to the polls before energy bills soar," Lambert explained, adding that Labour could gain an advantage by revising these tax promises and potentially reconsidering their commitment to the triple lock pension system.
He advised that an early election might be politically advantageous before the anticipated 25% rise in energy bills. "Better do it now before everyone's bills go up 25%," Lambert concluded. He added that the current tax policies, such as the rise in employers' National Insurance, have been blamed for job losses. By potentially removing these pledges from a new manifesto, Labour might gain more fiscal flexibility.Lambert told Deep Dive host Chris Pleasance that he fears politicians and billpayers alike have 'lulled themselves into a false sense of security' over the scale of the problem. 
