Energy price cap rise will be 'heavy blow' to household finances already hit by Covid

Energy price cap rise will be 'heavy blow' to household finances already hit by Covid

Posted: Thu, 25 Feb 2021 15:53

25 February 2021

Responding to Ofgem's latest update to the energy price cap, Citizens Advice said its research in December indicated that 2.1 million households were behind on their energy bills, a rise of 600,000 compared with before the pandemic. With the new price cap bills may increase by up to £96 from 1 April meaning millions of households will have two stark choices; stay cold or fall further into debt.

Ian Dennis, Chief Officer, Citizens Advice Charnwood, said:

"This increase will be a heavy blow to a lot of households in Charnwood. For many people on Universal Credit, it will come at the same time as the £20 a week increase to the benefit is set to end. Now is not the time for the government to cut this vital lifeline.

At Citizens Advice Charnwood, we are already seeing an increasing number of people who are on furlough or have lost their jobs, and are struggling to cover basic living expenses. They are falling behind with their household bills and many are coming to us for help in accessing food and energy vouchers.

Shockingly, across Charnwood 1579 food parcels were given out in January, an increase of 127 parcels over the previous month."*

If you are concerned about debt, need energy advice, or want to find out what benefits you can claim ring 01509 649605. Information and advice are also available on the website www.charnwoodcab.org.uk

Citizens Advice Charnwood:

Local Enquiry Line: 01509 649605. Open Mondays and Thursdays 9.30 am – 3.00pm, Tuesday 9.30am – 12 noon.

*John Storer House

Background

  • The £20 uplift would cover nearly a whole week (six days) energy costs for a below average income household
  • In December Citizens Advice research showed that 2.1million households were behind on their energy bills, 600,000 more than in February 2020.
  • The charity's research also showed a quarter of all energy customers - up to seven million households - worry they won't be able to pay their bill this winter.
  • Since 1 March 2020, Citizens Advice has supported more than 350,000 people with Universal Credit. A £20-a-week increase to Universal Credit and Working Tax Credit is set to end on April 5.

Tags: Advice, Covid-19, Universal credit, debt, energy costs, poverty