Help to Repay needed to tackle record energy debt as prices increase to £1,717
National Debtline responds to latest Ofgem Energy Price Cap
Posted August 23, 2024
Ofgem has announced that its energy price cap will rise to £1,717 from 1st October 2024, an increase of 9.5 percent on June’s level.
Leading debt advice charity, National Debtline, is urging the Government to introduce help for people facing unaffordable energy arrears by introducing a Help to Repay scheme. Modelling by the charity shows this could help more than 654,000 low-income households out of energy debt.
Findings from National Debtline show 6.1 million households were struggling to pay their energy bills in June this year – a figure the charity says will likely rise as the increase in costs puts more pressure on low-income households.
More than a third of National Debtline have energy debts, and one in six cite income that is too low for basic needs as the main reason for their financial difficulty.
Steve Vaid, chief executive at the Money Advice Trust, the charity that runs National Debtline, said:
“Rising energy prices come at a difficult time for people who are already struggling with their bills, as winter hits and energy usage goes up.
“With energy arrears already at record levels, the Government must act to provide support to households in difficulty.
“The Help to Repay scheme we have proposed, which would provide repayment matching and debt write off options, is urgently needed and could help hundreds of thousands of households currently trapped with unmanageable energy arrears.
“Anyone struggling with their energy bills, or worried about their finances, should contact National Debtline as soon as possible – our advisers can help.”
National Debtline provides free, independent advice. Contact us on 0808 808 4000 or via www.nationaldebtline.org
