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Citizens Advice has revealed it is helping more people than at any time since the pandemic began as sky-high gas costs continue to exacerbate the cost-of-living crisis.
The consumer charity has issued stark figures which reveal it broke several “unwelcome records” in January, which it says reveal the enormous pressures facing households even before the price cap increase in April.
For example, more than 8,000 people with energy debt were supported by the charity during the month, which is the highest number on record. The average energy debt of those it helped was £1,450, up from £1,330 in 2020.
The charity said more than 270,000 people sought one-to-one advice, topping the previous monthly high of 265,000 set in November 2021.
Meanwhile, 24,000 people helped by the charity’s advisers required some type of crisis support such as food bank vouchers and charitable payments. This too is the highest on record, passing the previous peak set only a month before.
Clare Moriarty, chief executive of Citizens Advice, said: “Cost-of-living pressures are at boiling point. April’s price hikes haven’t yet hit and already people are turning to our services in record numbers.
“Frontline advisers are hearing desperate stories of families living in just one room to keep warm, people turning off their fridges to save money and others relying on hot water bottles instead of heating due to fears about mounting bills.
“Our data has reached red alert levels. If the government doesn’t act soon and bring forward a package of support for those on the lowest incomes, many more households will be pushed beyond breaking point.”
The publication of the charity’s figures follows an announcement by Ofgem this morning (2 February) that it will bring forward its announcement on the April price cap period to tomorrow, rather than the initial date of 7 February.
The latest analysis from Investec suggests the default cap will be set at £1,924, almost £650 more than the current level.
“A matter of urgency”
Elsewhere in the sector, Energy UK’s chief executive, Emma Pinchbeck, has stressed there is an urgent need for the government to act.
Research undertaken by Public First on behalf of the trade body found a quarter of respondents said they would not be able to afford the anticipated £50 monthly increase in their energy bills.
This increased to 45% of those with annual incomes under £20,000. While 33% of respondents said they could afford the hike in energy bills were it not for other cost of living increases, 17% said they cannot afford the extra energy costs by themselves.
Pinchbeck said: “As our research shows, the expected price cap rise is going to be extremely worrying news for millions of customers. Several ideas to reduce bills have been under discussion but it’s now a matter of urgency that customers get reassurance from the government that they won’t be left to face this rise alone.
“Suppliers have been providing hundreds of millions of pounds in financial assistance since the start of the pandemic and will continue to do all they can to help customers struggling with their bills.
“When international gas prices are this high, there is a need for government to act, as other governments already have, to make a real difference to bills and to protect the wider economy.”
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