NEW RESEARCH from Citizens Advice reveals that one in four people (25 per cent, the equivalent of 16.5 million people) are so worried about increases in energy costs that they say they will be forced to turn off their heating and hot water this winter.
This increases to 31 per cent of households with children, and 39 per cent of bill payers on a low income.
Citizens Advice is warning that without urgent intervention from the government, households will continue to face impossible choices and drastic cutbacks to be able to afford to heat their homes:
- 48 per cent (35.1 million people) said they would have to turn down or turn off their heating or hot water
- 34 per cent (22.8 million people) said they would have difficulty affording food or other essentials, such as their mortgage, rent or childcare, and seven per cent (4.5 million people) said they would be forced to skip meals.
Despite bills coming down slightly since last year, Citizens Advice is still helping record numbers of people with energy debt, the most common debt affecting people who seek the charity’s support. Nearly five million people (seven per cent of households) across Great Britain live in households in debt to their energy supplier. This rises to more than 14 per cent of households with children under 18.
What’s more, five million people are currently in a negative budget – meaning their essential monthly outgoings exceed their income. The predicted price cap increase of £150 would pull a further 187,000 people into a negative budget – a number equal to the population of Bournemouth.
Citizens Advice says that with bills increasing and historic levels of energy debt, the new government must act fast to stop millions of households falling further into hardship this winter. While plans to focus the energy market on renewables could reduce energy bills in the long term, households in desperate need cannot afford to wait until then.
Citizens Advice says one action the government could take straight away is reforming the Warm Home Discount, to make sure it reaches more people and better reflects their energy needs. This would mean households with low incomes and higher energy needs – like families with children and disabled people – would be eligible for more financial support. It would also mean that pensioners would get more support than they have done under previous schemes, such as the Winter Fuel Payment.
Until April, Nigel worked as a self-employed window fitter but was forced to stop working due to serious back problems. While he has been unable to work, he has had no choice but to borrow from friends and family to pay for groceries and energy bills. His local Citizens Advice has organised fuel and food bank vouchers for him.
Nigel said: “Trust me, I’m not looking forward to the winter. Before I got my first benefits payment, I’d had to borrow off people to cover my gas and electric. I’m moving onto Universal Credit soon, and I know that around half of the amount I’m awarded will end up going towards fuel.
“How can you make a budget work when your gas and electric is dearer than what you’re paying to actually eat? I can honestly say I can feel my body is starting to shut down because of the stress. It’s the worry of trying to find money for the electric and gas, trying to find money to get bits of food. It’s Dickensian.
“Without fuel vouchers from Citizens Advice I would have been sitting in darkness, and I wouldn’t have been able to take hot baths, which I need to ease my back pain.”
Louise Steel, Debt Caseworker and Advice Services Manager, Citizens Advice Wyre Forest, said: “As we go into autumn and winter, we know more people will be needing our support. We rely on recruiting more volunteers in the colder months to cope with the inevitable rise in demand for our services.
“When people are struggling to keep up with their energy bills, everything else is impacted. We’ve supported people who’ve sold all their non-essential electrical appliances to help pay their rising bills. And we also have people staying in our waiting room longer than they need to, just to warm up and watch TV.
“The knock-on effect of this isn’t just financial, many of those we support with energy costs are also dealing with anxiety and depression.”
Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “We’re already helping record numbers of people with energy debt, but we’re now bracing ourselves for an even more challenging winter.
“The price cap increase will see a wave of households tipped into debt, bill payers forced to make impossible decisions to make ends meet, and families worried about the impact the cold will have on their loved-ones.
“Energy prices might be down from the peak of the crisis, but with many already in the red and the removal of previous support packages, there’s still no light at the end of the tunnel for those in desperate need. The government has inherited a huge challenge, so there must be no delay in their action. We need to see targeted bill support that reflects the realities of people’s energy needs.”
* Source: Citizens Advice