Citizens Advice has warned that the “already worrying” number of energy customers self-disconnecting from pre-payment energy meters could soar amid the cost of living crisis.
The charity expects that in January pre-payment customers will need to find approximately £360 a month for their energy bills or risk being disconnected. January is typically a month where households are on a tight budget following Christmas.
As reported by the Daily Record, Citizens Advice has called for benefits to be increased in line with inflation, which at the moment is 10.1 per cent though is expected to rise to 11 per cent before the end of 2022.
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The organisation's data suggests that the amount of people reaching out to it for support may triple in the next few months if this does not happen. New Department for Work and Pensions (DWP) head Mel Stride stated this week that there would be no announcement regarding the annual benefits uprating before November 17.
Chief executive of Citizens Advice Manchester Andy Brown has stated that the charity is "breaking unwelcome records", as the number of people who requested crisis help doubled in March to December. He stated that the public must not spend winter "too scared, too frightened to turn the heating on”.
He added: “We are concerned that the consequences of enforcement action and, in particular, the imposing of a pre-payment meter to collect energy bill arrears, will lead to a spike in the already worrying rise in the number of people self-disconnecting.
“When people on pre-payment meters can’t afford to top up, this doesn’t mean they simply slip into debt.
“For many, they often self-disconnect, impacting on their health, their wellbeing and potentially leading to disrepair for their homes.”
Citizens Advice is also seeking targeted support for people on the lowest incomes, with more clear guidance on what help will be available following April 2023, after the UK Government's £2,500 Energy Price Guarantee finishes.
The organisation has called for a winter moratorium on all judgments in housing possession or debt case, as well as the instant suspension of applications from energy companies looking to enforce or install prepayment meter or disconnection.
Brown argues that this would save lives and assist the ”already overburdened” court system in avoiding a “deluge” of claims by creditors, as well as protect the NHS from an influx of people requiring support and care due to the “anxiety being imposed upon them”.
He continued: “Such a moratorium will improve the quality of life and wellbeing of the millions most exposed to the impacts of this cost-of-living emergency, and who face the prospect – some for the first time - of going into debt through no fault of their own.”
A Government spokesperson stated: “We understand this is a difficult time for families, which is why we have put in place immediate support including the energy price guarantee, which is saving the typical household around £700, in addition to providing the most vulnerable households with £1,200 each this year on top of the £400 support that households will benefit from.
“We will consider how to support households from April 2023, focusing support on those in need.”
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