Energy price cap lowered, but help needed for households trapped in energy debt
National Debtline responds to Ofgem’s energy price cap announcement.
Posted May 24, 2024
Ofgem has announced that its energy price cap will drop to £1,568 from 1st July 2024, a decrease of 7 percent compared to April’s level.
With more than a third (36 percent) of callers to National Debtline struggling with energy arrears, the charity is warning that despite a further drop in price from July, millions of people will remain trapped in energy debt without urgent support.
As campaigning gets underway for the General Election, National Debtline is calling for a Help to Repay scheme to provide repayment matching and debt write off options for households facing unaffordable energy debts.
Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline, said:
“The modest fall in the energy price cap will provide some relief to households, yet energy arrears remain at record levels. Millions of people will remain trapped in energy debt without further support.
“Urgent action is needed to help struggling households.
“Tackling mounting energy arrears should be a priority for the next Government, through a Help to Repay Scheme to ensure people have access to a safe route out of energy debt.
“I would urge anyone worried about their energy bills to seek free, independent debt advice from a service like National Debtline as soon as possible. Our advisers are here to help and can talk you through the right options for you.”
