New research reveals that one in four people, the equivalent of 16.5 million people are so worried about increases in energy costs that they say they will be forced to turn off their heating and hot water this winter.
This increases to 31% of households with children, and 39% of bill payers on a low income
Citizens Advice is warning that without urgent intervention from the government, households will continue to face impossible choices and drastic cutbacks to be able to afford to heat their homes:
48% said they would have to turn down or turn off their heating or hot water while 34% said they would have difficulty affording food or other essentials, such as their mortgage, rent or childcare, and 7% said they would be forced to skip meals.
Despite bills coming down slightly since last year, Citizens Advice is still helping record numbers of people with energy debt, the most common debt affecting people who seek the charity’s support. Nearly 5 million people across Great Britain live in households in debt to their energy supplier. This rises to more than 14% of households with children under 18.
What’s more, 5 million people are currently in a negative budget – meaning their essential monthly outgoings exceed their income. The predicted price cap increase of £150 would pull a further 187,000 people into a negative budget
The government has inherited a challenging situation. With bills increasing and historic levels of energy debt, the new government must act fast to stop millions of households falling further into hardship this winter. While plans to focus the energy market on renewables could reduce energy bills in the long term, households in desperate need can’t afford to wait until then.
Citizens Advice says one action the government could take straight away is reforming the Warm Home Discount, to make sure it reaches more people and better reflects their energy needs. This would mean households with low incomes and higher energy needs – like families with children and disabled people – would be eligible for more financial support. It would also mean that pensioners who’re at the sharp end of the energy crisis would get more support than they have done under previous schemes, like the Winter Fuel Payment.
Dame Clare Moriarty, Chief Executive of Citizens Advice, said:
“We’re already helping record numbers of people with energy debt, but we’re now bracing ourselves for an even more challenging winter.
“The price cap increase will see a wave of households tipped into debt, bill payers forced to make impossible decisions to make ends meet, and families worried about the impact the cold will have on their loved-ones.
“Energy prices might be down from the peak of the crisis, but with many already in the red and the removal of previous support packages, there’s still no light at the end of the tunnel for those in desperate need. The government has inherited a huge challenge, so there must be no delay in their action. We need to see targeted bill support that reflects the realities of people’s energy needs.”
