Energy price cap rise another blow to struggling households

The new price cap will be set at £1,928 per year for average energy use, an increase from the current £1,836 cap implemented in October 2022. This change signals continuing upward pressure on energy bills for UK households in the near future.

Recent data from the debt charity National Debtline reveals the extent of the energy affordability crisis in the UK. Their findings show that 28% of people calling National Debtline are behind on paying their energy bills. This translates to an estimated 6.4 million people across the UK struggling with energy debt. Equally, 1 out of every 4 people with overdue energy bills (24%) currently do not have the means to repay what they owe.

David Cheadle, acting chief executive at the Money Advice Trust, the charity that runs National Debtline, said, “The rise in the energy price cap will only add to the pressure on households already saddled with unaffordable energy debts - without help, many will be left out in the cold this winter as they struggle to heat their homes.  

“With household finances still under stress, more people will face impossible choices in the New Year as budgets no longer stretch to meet their essential costs.  

“The absence in yesterday’s Autumn Statement of any further help with energy costs was disappointing. With one in four people with energy debts currently unable to pay, the need for a Help To Repay Scheme will only increase.  

“Anyone who is worried about paying their energy costs should seek free, independent advice as soon as possible. Our advisers at National Debtline are here to help and can take you through your options.”