The UK could be heading into another difficult period for household finances as higher energy bills threaten to push inflation back towards 3%. In this episode of Debt Matters, we examine what the renewed squeeze could mean for consumers, creditors and the UK debt collection sector.

Energy bills are driving inflation higher

Households are facing fresh pressure after Ofgem raised the household energy price cap by 13% in July. Economists expect July's Consumer Prices Index inflation figure to rise to around 2.9%, up from 2.6% in June, with higher gas and electricity bills a major contributor.

The Bank of England expects inflation to reach 3.2% before the end of 2026. Continued instability in global energy markets could create further pressure, leaving households with essential costs taking a larger share of ...