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More than 14 million unable to afford October’s energy hikes

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
18/03/2022

The cost of living crisis is hitting families across the UK, and it could get worse over the course of this year

Energy costs are soaring from April, with average increases of 54%.

But it gets worse. They are likely to rise again in October, when the energy price cap is reviewed. Further hikes could mean many families simply can’t afford their gas and electricity bills.

Research published by Citizens Advice shows that the predicted £145-a-month hikes to energy costs in October could mean one in four adults – equivalent to 14.5 million people – will be unable to afford their bill.

The charity said this is up from around five million saying they already can’t afford April’s price increase of £60-a-month, even when accounting for government support measures.

Two in five (41%) of those warning they’ll be pushed into the red next month have already borrowed money to pay for essentials.

Dame Clare Moriarty, chief executive of Citizens Advice, said: “These staggering findings must be a wake-up call to the government. With one in four unable to afford their bills come October, measures announced so far simply don’t meet the scale of the challenge.

“Parents shouldn’t have to decide between giving their kids a hot bath or saving the money to buy them new school shoes.”

Key findings

Citizens Advice’s latest research revealed that more than eight in 10 (83%) don’t think the government’s loan would make a significant difference to their ability to pay their energy bills.

It also highlighted that people using prepayment meters – many of whom are already on low incomes – are set to be hardest hit by rising energy prices. They’re less able to spread the cost of their energy throughout the year and are at greater risk of being disconnected if they can’t afford to top up.

Rising energy costs could see an average family on a prepayment meter facing bills of £336-a-month – over £10 a day – in December 2022, when the same usage would have cost them £147 in December 2021.