In response to the Ofgem announcement of a new energy ‘price cap’ of £2,074, Debt Justice has warned that consistently high energy prices are entrenching the UK’s household debt crisis.
Heidi Chow, Executive Director at Debt Justice said:
“The price cap is still dangerously unaffordable. With the end of the government’s £400 Energy Bill Support Scheme and record hikes in food prices, overall, households will be worse off this year.”
“Rather than relying on falling wholesale gas prices to solve the record energy debt, the government needs to intervene to tackle the debt hangover that is trapping millions of households in hardship and poverty.”
Junnie Braithwaite is 56 and lives in northeast London. Her socially rented apartment is split over two floors, and she needs to use a stairlift because of fibromyalgia and arthritis. She said:
“It’s give with the one hand and take with the other. I might get a few quid off my energy bill but that’s swallowed up by food prices going through the roof.”
”I still don’t have peace of mind and I am already dreading winter when my energy bills will go up again.”
For more information and any follow up questions contact Joe Cox on 07796884487.
The price cap is based on the average annual bill of a dual fuel direct debit customer with average consumption, it is not a ceiling on costs. https://www.bbc.co.uk/news/business-65695752
Resolution Foundation analysis found that the average increase in food costs since 2019-20 is £1,000 per household. https://www.resolutionfoundation.org/publications/food-for-thought/
Debt Justice (formerly Jubilee Debt Campaign) is a campaigning organisation working to end unjust debt and the poverty and inequality it perpetuates, in the UK and across the world https://debtjustice.org.uk/
Further policy detail is available in the ‘End Energy Debt’ briefing available at https://debtjustice.org.uk/wp-content/uploads/2023/03/Energy-debt-briefing-v3.pdf