More than a third of worried about affording energy bills this winter

Over 10 million households (37%) are worried about how they’ll afford their energy bills this winter, according to new research from Citizens Advice.

With the latest energy price cap expected to drive bills up to a three-year high – fueled by the ongoing conflict in the Middle East – the charity warns that millions of households cannot absorb even minor hits to their already stretched budgets.

Citizens Advice’s latest research suggests 3.5 million households are currently in energy debt – either behind on their bills or without gas or electricity because they can’t afford to top up their prepayment meter. The charity’s research shows energy debt is significantly more common among those on means-tested benefits, from communities of colour, or living in households where someone has a disability.

Worryingly, energy suppliers are failing to reach many of those most in need, with only one in five (19%) people in energy debt saying they’d been proactively contacted by their supplier with offers of support.

For those on a prepayment meter (PPM), periods without gas or electricity can quickly become the norm. Alarmingly, just over a quarter (28%) of PPM customers lost gas or electricity because they couldn’t afford to top up in the last year, with one in five (21%) saying they typically went without power for 12 hours or more.

Citizens Advice says the government must provide a comprehensive package of support this winter – not just a single sticking plaster – to protect households from the ongoing energy crisis.

The charity wants the government to commit to implementing a reformed Warm Home Discount (WHD) – paid for in-part via general taxation – which could save dual-fuel households on means-tested benefits around £400 per year on their energy bills. This would be in addition to the existing £150 WHD payment.

Those in energy debt told the charity they’ve got used to going without to make ends meet, including cutting back on food spending (38%), cutting back on leisure and social activities, including seeing friends and family less, cancelling holidays, and not taking part in hobbies (36%) 32% are also using less heating even when it’s cold.

Dame Clare Moriarty, Chief Executive of Citizens Advice, said “A crisis used to be a once-in-a-generation event, but for millions it’s now an inescapable daily reality. Whether the price cap goes up or down, the reality for households remains the same: energy bills are simply still too high, prices continue to rise faster than incomes, and debt levels continue to grow.

“The government has already taken positive action to cut levies and VAT on electricity, but the impact of the conflict in the Middle East means people still face rising costs. To build on this, we need bold solutions to protect those most at risk of sitting in cold, dark homes this winter.

“Taking action could keep around £400 a year in the pockets of the people who need it most, providing a vital lifeline alongside existing support.”