Energy price cap rise risks leaving struggling households “out in the cold”
National Debtline responds to Ofgem’s energy price cap announcement
Posted November 23, 2023
Ofgem has announced that its energy price cap will rise to £1,928 from 1st January 2024, an increase of 5 percent compared to October’s level.
Nearly three in 10 (28 percent) of callers to National Debtline have energy arrears.
The charity’s recent findings, based on UK wide research, show that an estimated 6.4 million people are already behind on their energy bills, and one in four people with energy debts (24 percent) are currently unable to repay.
National Debtline is calling for support to help households most severely impacted by high energy costs, including payment matching or debt write-off options.
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.”
National Debtline provides free, independent debt advice on 0808 808 4000 and at www.nationaldebtline.org
