Ofgem’s energy price cap rise has taken effect this week, pushing up the typical household energy bill by approximately £35 annually. The hike coincides with winter’s arrival, potentially making energy costs unaffordable for some families.
Debt charity StepChange warned that this apparently modest sum could push certain households over the brink, especially following years of relentless bill rises during the cost of living squeeze.
Over the past two years alone, the charity has witnessed a 32% surge in average energy arrears amongst those seeking debt guidance. Before the looming bills bite, specialists are encouraging families to conduct five essential checks to determine potential eligibility for assistance.
Simon Trevethick, head of communications at StepChange Debt Charity, said: « Not only will people find they are having to switch on their heating now as the weather turns colder, but bills are also set to go up this month, which is another blow to household finances.
« Energy arrears are the most common type of debt across household bills that we see at StepChange, and people have had little respite from steep costs over the past three years. For anyone who is struggling or worried about energy bills, there is support available out there. »
The debt experts have advised people to seek help from three key sources of support: their energy supplier, local council and the British Gas Energy Trust. These organisations may offer discounted bills, reductions or grants to help cover costs and prevent arrears.
The British Gas Energy Trust provides households with grants to help clear debts and pay bills for customers of any energy supplier, not just British Gas. However, there are certain eligibility criteria that must be met in order to qualify. More information can be found on their website.
Local councils can also provide assistance through the Household Support Fund, which is set to run until March 31, 2026. Each council sets its own eligibility criteria, application process, and decides how to distribute the funds in their area so you will need to check with your local council to find out if you can benefit from the scheme.
The experts also emphasised the importance of speaking to your energy supplier directly before falling into arrears: « Energy suppliers have dedicated support for customers who are struggling with bills. This could include payment plans, hardship funds, or access to grants, so contact them as soon as possible to assess your options. »
It may also be worth checking if you are on the best tariff and with the best supplier to suit your circumstances and budget. Using comparison sites can reveal if there are better options for you elsewhere that could lighten the load.
But the experts warned: « Switching energy suppliers or tariffs could save you money and there are many comparison sites that can help you look into this. However, it’s important to use a site that has signed up to Ofgem’s Confidence Code to get unbiased comparisons. »
Finally, the experts urged households to avoid credit as much as possible in order to cover their necessities.
They explained: « If finances are tight and you’re struggling to cover bills, try to avoid resorting to credit to pay for them. This may only worsen debt problems in the long run, and this is where it may be beneficial to seek expert advice or to look into what support is available to you. Seek free and impartial debt advice from a debt advice charity like StepChange, who can help you get back on track and recommend a path forward for dealing with your debts. »
