THE COST-of-living crisis will have a 'disastrous effect' on people in the city, as those across Oxford are set to face soaring energy bills, council tax rises and climbing inflation costs in the coming months.

This week, the energy regulator, Ofgem, announced it would be raising the maximum rate that suppliers can charge for an average dual-fuel energy tariff by £693, to reflect the fourfold increase in energy prices over the past year.

This means, by April, there will be 54 per cent increase in the cap on energy bills, which will affect over 22 million households across the UK.

The rise is said to affect typically more vulnerable homes that use a pre-pay meter, which on average will see a steeper hike of £708 resulting in an annual bill of £2017.

It is said to be the worst economic crunch since Standard of Living records began, over three decades ago.

People across the UK are also set to see rising water bills, which are set to rise 1.7 per cent from April, adding £7 to the average bill.

Meanwhile, inflation rates are continuing to steeply rise, with the Bank of England warning that inflation is set to spike to 7.2 per cent in April – this could result in disposable income being reduced by 2 per cent.

On Thursday, Chancellor the Exchequer, Rishi Sunak announced a £9 billion package, including a one-off repayable £200 discount and a £150 rebate on council tax bills, and £144 million to councils to support vulnerable households amid surging energy prices.

Yet the relief package has been criticised for simply stalling payments over a five year period.

Anneliese Dodds, Labour MP for Oxford East, expressed concerns over the Conservative Government’s relief package, branding it as a ‘buy now pay later scheme’.

The MP said: “A lot of people here in Oxford have been contacting me with their concerns – people have a lot of high cots in the city already, with rent being so high, but now with the energy cost being very high as well, it’s a really troubling time for them.

“Yes people will get some money off their bills, but that’s just going to moulded into bills in the future.

“We as Labour set out a plan which wouldn’t be funded through people paying higher bills in the future, but would be funded through a Windfall Tax on oil and gas companies.”

Oxfordshire County Councillor Damian Haywood, who represents Iffley Fields and St Marys, said the rise in inflation and the removal of the fuel cap in April will have a 'disastrous effects on the poorest in this city'.

He added: "Oxford is seen as rich and prosperous city, being the second most expensive city to live in the UK. This prosperity hides a lot, 26 per cent of children live below the poverty line, over 10 per cent of households are in fuel poverty currently.

"The consequence of this will lead to further poverty which impacts and eventually costs us all, due to the associated public health issues."

The councillor called on the Government to 'find better solutions' such as 'reversing the £20 cut in universal credit, expanding the warmer homes discount, initiating a windfall tax on energy producers thereby halting the need for the increase in the cap'.

Oxford West and Abingdon MP, Layla Moran, said that her constiutents are 'being fundamentally let down by a failing Conservative Government which is offering no real solutions to their issues'.

The Lib Dem MP said: "The cost of living crisis is a very real problem for many people in my constituency.

"The Liberal Democrats and I have put forward solution after solution only to be palmed off by a Government limping from crisis to crisis. We need to urgently implement a Robin Hood tax on the obscene profits of the oil and gas giants, and use the money raised to take the action necessary to support vulnerable people, like cutting VAT on energy bills, expanding the Warm Homes Discount and scrapping the National Insurance tax hike.

“People are already being forced to choose between heating and eating, and many more risk being driven into poverty unless the Government act, now.”

The rise in energy costs will come into place at the same time many people across the city will be facing further costs.

The national rise in energy costs is not the only pinch that the people of Oxford will be feeling in their wallets.

The pilot Zero Emissions Zone will be launching in Oxford later this month will see all polluting cars charged up to £10 for entering certain parts of the city.

If Oxford City Council’s budget plan for 2022/23 is also passed by the Council on February 16 people in Oxford could be seeing further rises in their cost of living.

This includes a 1.99 per cent rise in council tax and parking charges increasing by 50p an hour in city centre car parks.