As the school summer holidays draw to an end, single mum Bev Arrowsmith had felt a small sense of relief, as her children could return to eating free school meals and wouldn't be spending all day at home.
But after the announcement that the new energy price cap could see households paying an estimated £3,549 per year, Bev described that feeling being replaced with an 'impending sense of doom.'
She has already had to put new school uniform for her two children - aged six and 17 - on to a credit card, and now fears many of her next bills will have to be paid the same way.
READ MORE: Martin Lewis' worrying energy price forecast in urgent plea to government
The 42-year-old from Middleton, who lost her partner six years ago, admits that she'll have to start sacrificing her own health to make sure her children are kept warm and safe this winter.
And as charities warned that the new price cap could push 8.9 million UK households into poverty this October, the impossible decisions being made by Bev will be replicated across the country.
"It's really scary," Bev said, speaking of the announcement on Friday. Her daughter was diagnosed with a disability at young age meaning she had to take several months off work to care for her.
"As she’s improved I’ve gone back to work but my wage just doesn’t seem to be cutting it anymore and I am still trying to catch up on all the bills that I fell down on whilst off work," she said.
"All of my money at the moment is going on bills. It is terrifying. The bills don’t stop. Credit card companies are putting up their APR rates. There is just no respite. At this point I think some of my vital bills are going to have to be put on a credit card.
"The council has given me food voucher support over the school holidays. I don’t think I would have survived the six weeks without those vouchers. The price cap just feels you with a sense of impending doom. It is still going to be a case of putting these meter readings in and waiting for the bill to land which is pretty terrifying."
Ofgem - who set the energy price cap - say the rises are a result of record increases in global gas prices, with the war in Ukraine leading to a huge reduction in supply of gas from Russia. It said the increase reflected the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the Covid pandemic.
The cap will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1, and will remain in place until December 31, when it will be adjusted again.
The 4.5 million pre-payment meter customers meanwhile, who are often the most vulnerable and already in fuel poverty, will see an even more punishing increase, with their average annual bill set to go up to £3,608.
"I have asked my energy supplier to reduce my direct debit until Christmas but they have just completely ignored me," said Bev. "You can’t shop around either at the moment, all my eggs are in one basket.
"It’s going to have to be a case of getting as warm as we can and only putting the heating on when it’s absolutely necessary. I have an obligation to my children to keep them warm and safe and that will be at a cost to me and I will have to go without something to give them that basic provision.
"I’m a full-time working mum on an alright wage at £25,000 a year. But now the bills are going up at the rate they are, my wage isn’t enough. It would probably make me cry if I calculated what was coming compared to what is going out. I know I’m a lot worse off."
Fuel poverty charity National Energy Action (NEA) estimated that the rise would increase the number of UK households in fuel poverty from 4.5 million last October to 8.9 million this October, taking into account the Government’s support package announced in May.
NEA chief executive Adam Scorer said: "The scale of harm caused by these price rises needs to sink in. A warm home this winter will be pipedream for millions as they are priced out of a decent and healthy quality of life.
"Households need money in their pockets to weather this storm or we are going to see millions in dangerously cold homes, suffering in misery with unimaginable debt and ill health. Action is needed now to prevent the bleakest of winters."
Philippe Commaret, the managing director of energy giant EDF, has warned that half of UK households could be in fuel poverty in January as a result of rocketing prices, while Which? has urged the Government to raise its energy bills discount by at least 150% or risk pushing millions of people into financial distress.
The consumer watchdog said the Government’s financial support for all households must increase from the current £400 to £1,000 – or from £67 to £167 per month from October to March.
However, no immediate extra help will be announced by Boris Johnson’s Government, with major financial decisions being postponed until either Liz Truss or Rishi Sunak is in No 10 after the Tory leadership contest. Based on Wednesday’s gas prices, experts at consultancy Auxilione think the cap will reach £5,210 in January 2023 and £6,823 in April.
Read next:
-
Everything you need to know about the energy price cap change
- Drugs baron ran business behind bars while partner in crime lived luxury lifestyle - seven people have been jailed
-
Tributes paid to 'popular' firefighter Daniel Lee after body found in River Irwell
-
Murder investigation launched after woman in her 20s discovered dead in flat as man, 51, arrested
