A Newcastle charity has warned that people could die in their cold homes as vulnerable families who have to pay for their energy in advance face the first cold snap of this winter.
Newcastle Citizens Advice is urging struggling households to contact their energy supplier rather than sit in cold houses as temperatures plummet to freezing in the city over the next few days. While everyone is likely to see increased bills as the weather gets colder, customers who have prepayment - or pay-as-you-go - meters are literally left in the cold if they have no money to top up their meters.
"The energy price guarantee is £2,500 for an average home but the message we are getting is that this is massively unaffordable for some people, who are taking desperate - and dangerous - risks to keep warm," said a spokesperson from the CAB. "In winter 20-21, it is estimated that 6,000 people in England died as direct result of their homes being too cold, and energy costs then were around half of what they are now. At Citizens Advice Newcastle, we have seen more people who can't afford to heart their homes so far this year than the previous five years combined. It's shocking and desperate and we are worried that people are going to pass away simply because their homes are too cold."
Read more: Warning that Universal Credit claimants face real-terms cut to benefit
The spokesperson said the situation was made worse because a lot of the additional grants and funding to help with energy costs had been used up earlier in the year as the need was high even in the summer, and the Household Support Fund in Newcastle was now closed until January.
"It is a terrible thing to have to say in 2022, but we are advising struggling families to concentrate on heating one room rather than the whole house to keep costs down, but please do not take risks with candles and old heaters," she said. "We are seeing a massive increase in people reducing the amount of money they are using to top up their meter or not topping it up at all, in other words self-disconnecting. This is very worrying and dangerous."
She said that people worried about the nest few days should do three things:
- Keep one room heated to 18C and spend as much time there as possible, even sleeping in there if necessary;
- Contact their energy supplier, as it had a duty to help families who were struggling to heat their homes;
- Don't take risks with candles or old electrical or gas heaters, or risk lighting fires indoors unless in a safe fireplace.
The concern comes as it was announced that families on prepayment meters will be paying even more to heat their homes from next month.
The energy price cap is rising to £4,279 from £3549 for a typical household from January 1, and although no one pays this currently due to the price guarantee that brought typical bills down to £2,500, people who pay for the energy using a prepayment meter will see a slight rise in their energy bills
The aim of the energy price guarantee is to keep typical bills for someone paying by direct debit to about £2,500 a year until March 31, 2023, but changes to the underlying price cap from regulator Ofgem and the amount of the discount mean that people on prepayment meters will see a small rise in costs of around one per cent up to £2,579 for typical use. Those who pay on receipt of bill will see an increase on 1.6 per cent to £2,715 for average use
Money Saving Expert Martin Lewis said: "The energy price guarantee was meant to guarantee prices until the end of March, so it will come as a surprise to many to see prices change in January. For most people the change will be trivial, but it is disappointing to see more substantial increases, with some on prepay meters seeing rises of one per cent, which include most of the poorest in society. I have been in touch with the Department for Business, Energy and Industrial Strategy to ask if this can be looked at, as it does not seem fair."
Grant Shapps, Secretary of State for Business, Energy and Industrial Strategy, told Mr Lewis: "As you say this is marginal for most people. You know we keep Government support under review at all times, but changes to bills here are about the way the price cap operates to reflect cost to serve, rather than related to the energy price guarantee. We acknowledge the way the energy price guarantee and the energy price cap interact isn't perfect, but it's right we move quickly to support people this winter. The energy price guarantee will keep bills at around £2,500 for a typical household this winter and we're grateful to you for continuing to make that clear."
Read more:
- Energy saving: We look at what will save you money and what's a waste of time
- Tumble driers, radiators and heated airers: Work out the best way to get your laundry dry amid the energy crisis
- One gadget you should buy if you're serious about saving energy during the cost of living crisis
- Households could save cash by taking a look at their fridge-freezer according to Which? consumer experts
- Simple switch to LED bulbs could save you up to £400 every year
- Why now is not the time to ask your energy supplier for your money back
