Cost of living: 'Energy prices have forced us to shut the door'

Olney's butcher has been in the town for seven years but will shut next week due to rising energy prices

Households are facing a jump in energy prices from October when the typical bill will rise to £3,549 a year. It comes after the price cap was increased by the energy regulator, but for businesses, who do not have such a cap, costs could be higher. How are they being affected?

'It's heart-breaking'

Olney butcher Paul Stevens says he cannot afford to stay open

Paul Stevens will be closing his butchers shop in Olney on 31 August due to the rising energy costs after seven years in the Buckinghamshire town.

"These energy prices have just crippled us and forced us to shut the door," he says.

"[I am] very emotional and very angry [about] the situation that we're in.

"There is a butchers shop already boarded up in the town - unfortunately it looks like this is going to go the same way.

He says the shop is "absolutely" part of the local community.

"The elderly, the young families we serve, the advice we give, everything about this shop is part of Olney and it's a real shame," Mr Stevens says.

He runs eight fridges, five of which are on 24 hours a day - in April 2021 his electricity price was 12p per kWh, in September it would be 64p per kWh.

"It's financial suicide for us to stay open, it's heart-breaking," he says.

'It's a very frightening time'

Nursery co-owner Bryn Williams says he may have to increase prices to meet higher costs

Bryn Williams, co-owner of Teddy Bears Inn Day Nursery in Peterborough, says it is the "uncertainty" of energy prices which is an issue.

He says: "It's important to plan your finances in business and you can't do that with the current situation.

"There are no caps for business and it's that uncertainty that is causing the most stress."

He says "nothing is off the table" when it comes to save energy and cutting costs.

"We'll look at energy efficient ways of doing things but when you are working with children you can't cut down on heating costs, you can't take that away from them.

"So we're going to have to look at other areas to cut back, food bills, our staffing costs, those sort of things will have to take the hit," he says.

Mr Williams says he will "maybe" look at rising prices but "we don't want to do that, we know parents are struggling too".

This time last year the business's energy costs were £300 a month, but he says he is now paying £1,100 a month, and that could go up to £1,500 a month.

"This is astonishing, it's a very frightening time," he says.

'We're really worried'

Pub landlord Simon Cleary says he and his staff are working to reduce energy usage

Simon Cleary, landlord at the Plough in Great Chesterford, Essex, says: "Our energy bills from October, when our fixed rate stops, will go from about £13,000 a year to £35,000 - it's an enormous rise.

"It comes as a bit of shock, we are looking at things we can try and mitigate it with."

He says he has changed to energy saving light bulbs and is condensing his fridge and freezer contents "but it is quite a frightening prospect".

"We have got some money in the bank that might help us through the winter.

"We're encouraging staff to turn off lights at the switch in areas not in use but we're all hoping, as a small business, the government will try and help us out if they can," he says.

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Mr Cleary says he has had "nothing at at all [from the government], and there is nothing on the horizon as far as we can see".

"We're really worried, we're worried our energy bills will get completely out of control, ultimately many small businesses will end up cutting back on staff, maybe not people but cutting back on hours, which will affect the whole community," he adds.

'More help is on its way'

Chancellor Nadhim Zahawi acknowledged on Friday that "we know we need to do more", and "more help is on its way".

He also suggested that people should cut down on how much energy they use.

"The reality is that we should all look at our energy consumption. It is a difficult time. There is war on our continent," he said.

A government spokesman added: "The civil service is also making the appropriate preparations in order to ensure that any additional support or commitments on cost of living can be delivered as quickly as possible when the new prime minister is in place."