Energy price cap drop “offers little solace” for struggling households
Ofgem has today announced that its energy price cap will drop to £1,923 from 1st October 2023, a decrease of 7 percent compared to April’s level but £646 higher than two years ago.
More than four in ten (41 percent) of callers to National Debtline have a deficit budget where they already do not have enough coming in to cover essential costs. The Charity is calling for more to be done for households most severely impacted by high energy costs, including through payment matching or write-off options.
David Cheadle, Chief Operating Officer at the Money Advice Trust, the charity that runs National Debtline, said:
“Today’s price cap announcement may be a welcome sign that energy prices are coming down, but it offers little solace for households who have already seen their energy costs spiral.
“This is an extremely worrying time for people who have fallen behind on their energy bills, whilst grappling with high costs across the board.
“Looking ahead to winter, many households will face impossible choices without further support.
“Ofgem can do more to support people worried about their energy repayments. This should include urging suppliers to provide a Help to Repay scheme, with payment matching or write-off options for households most severely impacted by this period of high energy costs.
“Anyone who is worried about paying their energy costs should seek free, independent advice as soon as possible. Our advisers at National Debtline are there to help and can take you through your options.”
National Debtline provides free, independent debt advice on 0808 808 4000 and at www.nationaldebtline.org