Energy crisis: UK households worst hit in western Europe, finds IMF

Heavy reliance on gas is behind price surge, with the impact on poorest households also the worst in Europe

The energy crisis is hitting UK household budgets harder than any country in western Europe, according to analysis by the International Monetary Fund. The difference between the cost burden on poor and rich households is also far more unequal in the UK compared with other countries.

The reason is the UK's heavy reliance on gas to heat homes and produce electricity at a time when Russia's war in Ukraine has sent gas prices soaring. In addition, the UK has the least energy efficient homes in western Europe.