Stevenage charity warns rising energy bills could push families into debt
The Ofgem price cap increased by 4%
A charity in Stevenage is warning that rising energy costs could put further pressure on families already struggling to make ends meet.
Ofgem’s energy price cap increased by 4% last week, meaning the average household paying by direct debit will pay around sixty pounds more a year, if the new rates are sustained for a full year.
The increase comes as households are already dealing with higher costs for essentials including food, water, insurance and transport.
Ryann Hansen from Stevenage Citizens Advice says the pressure on household budgets is already having a serious impact.
“Three and a half million people are already in energy debt already,” he says.
Mr Hansen says rising costs can leave people facing difficult decisions about what they can afford, adding: “It will inevitably mean that they have to cut something somewhere.”
Citizens Advice research found just under 40% of people surveyed had made choices between eating and using energy.
But Mr Hansen says that figure could actually be higher and "is probably a big underestimate”.
He says the impact of rising costs can also affect people's basic standard of living, with some people struggling to afford to heat their homes or use electricity.
Ryann Hansen says the situation could become more difficult as households head into the colder months, particularly for people who are already living with a negative budget.
He says Citizens Advice takes a holistic approach, looking at all of a person's finances rather than just their energy costs.
The charity can identify support that may be available, including low-income water tariffs and social tariffs, as well as helping people communicate with energy suppliers.
Hansen is urging anyone who is struggling to seek help as early as possible.
“Seek advice early if you can,” he says.
He says Citizens Advice can speak to energy providers, help put affordable repayment plans in place and check whether people are eligible for additional support.
“Please, please come to us early because the earlier we identify the problem, we might be able to put things in place,” he says.
Hansen says people should not simply ignore bills they cannot afford, as this can make the situation worse.