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Manchester Evening News
Manchester Evening News
Business
Kieran Isgin

Warning that millions will be unable to afford their energy bills this winter

A warning has been issued by Citizens Advice that millions of Brits will be unable to afford their energy bills in October based on current predictions.

Around 24 per cent (one in four) of consumers who will be unable to afford their energy bill is double the current number, according to figures released by the advisory service. It also predicts that the figure could shoot to one in three (34 per cent) in January when prices are expected to soar above £4,200.

The charity noted that its estimates are based on the energy rebate and cost-of-living payment offered by the government which is supposed to alleviate the burden of the cost of living crisis for vulnerable people. Among those who will be unable to pay their bills in October, 68 per cent have a household income of less than £30,000 according to the data.

Read more: British Gas explains how customers will get £400 energy bill discount

The warning also covers the 3.2 million people living with a disability as well as the 4.4 million families with children. On average, those who cannot afford the predicted rise in autumn will end up in a debt worth £100 a month.

Citizens Advice urged that any future support from the government must target those who need it the most. It is calling on industry regulator Ofgem to ensure that people are protected from the severe consequences of falling into arrears such as a suspension of forced installations of prepayment meters.

It also stated that rising prices will force more people into "dire circumstances" while many of its advisers are already sharing reports of people who had never needed to contact Citizens Advice looking for cost of living support such as food bank referrals and fuel vouchers. The charity also warned that future price increases will outpace the beneficial value of the energy rebate and argued that more needs to be done to stop people from falling into debt.

In July, a record number of people were unable to top up their prepayment meter, resulting in the fifth time that the record has been broken in a signle year. Meanwhile, it stated that its web page on advice for the cost of living crisis has been viewed more than 70,000 times - an increase of 40 per cent since March 2020.

Citizens Advice chief executive Dame Clare Moriarty said: “Every single day at Citizens Advice we’re already helping people in the most heart-breaking circumstances, trying to scrape together enough to feed their kids and keep the lights on. This will get far, far worse unless the Government acts.

“It’s becoming increasingly clear that skyrocketing prices will swallow up all of the help that has been announced so far. Every day that goes by without a plan is another day without reassurance for people who desperately need it.

"We urgently need further support, otherwise we risk a winter of despair for millions.”

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