New research published by Citizens Advice shows the predicted £145-a-month hike to energy costs in October could mean one in four adults – equivalent to 14.5 million people – will be unable to afford their bill.
This is up from around five million saying they already can’t afford April’s price increase of £60 a month. The charity included the government’s support measures in its calculations. Two in five (41%) of those warning they’ll be pushed into the red next month have already borrowed money to pay for essentials.
The findings come ahead of the upcoming Spring Statement, where the Chancellor has been urged to announce further support for families struggling to pay their bills.
Citizens Advice issued a warning last month as demand for its services soared. Its frontline staff are continuing to help record numbers access crisis support like food banks and one-off charitable grants amid the cost-of-living crisis.
Three key findings from Citizens Advice’s latest research:
1. Many don’t think the £200 energy rebate will help: In February the Chancellor announced a £200 “energy rebate” – which in practice is a compulsory loan – that is anticipated to be paid into customers’ accounts in October and paid back over the following five years.
Citizens Advice found more than eight in 10 (83%) said that they did not think that the government’s loan would make a significant difference to their ability to pay their energy bills.
2. Prepayment customers will feel the biggest pinch:People using prepayment meters – many of whom are already on low incomes – are set to be hardest hit by rising energy prices. They’re less able to spread the cost of their energy throughout the year and are at greater risk of being disconnected if they can’t afford to top up.
Rising energy costs could see an average family on a prepayment meter facing bills of £336-a-month – over £10 a day – in December 2022, when the same usage would have cost them £147 in December 2021.
3. Demand for crisis support continues to grow: February has continued to break unwelcome records when it comes to people seeking support from Citizens Advice. Referrals for crisis support like food bank vouchers and charitable grants in February surpassed January’s previous peak, with more than 24,000 people referred for support.
Additionally, advisers supported more than 1000 people on prepayment meters who simply couldn’t afford to top up and were at risk of losing heat and power.
