Citizens Advice fears the “already worrying” number of people self-disconnecting from pre-payment energy meters could spike amid increasing cost of living pressures. The charity is predicting that in January, a month where finances are typically tight for many, some pre-payment customers will need to find an estimated £360 a month for their energy or risk being cut off.
The charity is calling for benefits to be raised in line with inflation, currently at 10.1% and expected to hit 11% by the end of the year, with its data suggesting that the number of people seeking its support could triple within months if this does not happen.
New Department for Work and Pensions (DWP) boss, Mel Stride, made it clear during a parliamentary session this week that no announcement will be made about the annual benefits uprating before the Chancellor, Jeremy Hunt, delivers his Autumn Statement on November 17.
Andy Brown, chief executive of Citizens Advice Manchester, said the charity is already “breaking unwelcome records”, with the number of people requesting crisis help more than doubling between March and September, and increasing numbers in debt or with negative budgets, where their income does not meet their essential costs.
He said that people must not spend the winter “too scared, too frightened to turn the heating on”.
He continued: “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.”
The charity also wants to see targeted support for those on the lowest incomes, with clearer guidance on what help will be available after April, when the Uk Government’s £2,500 Energy Price Guarantee ends.
It is calling for a winter moratorium on all judgments in housing possession or debt cases, including the immediate suspension of applications from energy companies seeking enforcement or instalment of prepayment meters, or disconnection.
This would improve people’s wellbeing, save lives, help the ”already overburdened” court system avoid a “deluge” of claims by creditors, and protect the NHS from an influx of people needing support and care because of the “anxiety being imposed upon them”, he said.
He said: “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.”
Mr Brown was speaking at a session on challenges posed by the rising cost of living, held by the National Children and Adult Services Conference in Manchester.
A Government spokesperson said: “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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