Households throughout the UK are beginning to worry about how they will afford their energy bills this winter, after yet another price hike was announced. The government has announced measures to support those in greatest need, but do know what packages are available to you?
Ofgem has recently revealed the energy price cap will increase to £3,549 per year from October 1st.
This follows a previous energy price rise from £1,277 to £1,971 in April this year, which affected 22 million customers.
The reason behind this huge hike is because of a rise in global wholesale gas prices, as Russia cuts off supplies to Europe. As providers are having to pay significantly more for the fuel, this price increase has been reflected for customers.
Chief executive of Ofgem Jonathan Brearley noted: “We know the massive impact this price cap increase will have on households across Britain and the difficult decisions consumers will now have to make.”
However, surging bills are expected to impact millions of Brits, with analysis from homelessness charity Crisis revealing it could result in 1.7 million households being forced to live on the streets.
It stated households on the lowest incomes, earning an average of £12,650, will spend 133 per cent of their earnings on rent, food, and energy by the beginning of 2023.
Those with an average income of £22,615 will have to spend 73 per cent on their bills, and households earning £31,728 and £37,773 will pay 59 and 55 per cent respectively, iNews.co.uk reported.
To help those who need it most, the government has announced some packages. These include the Energy Bills Support Scheme, which will automatically take £400 off energy bills for consumers from October. This £11.7 billion initiative will help 29 million people by discounting energy bills by £66 in October and November, and by £67 in December, January, February, and March.
A spokesperson for the government advised billpayers: “There is no need to contact your supplier as all domestic electricity customers will be automatically eligible.”
In addition to this, it has introduced an Energy Bills discount, designed to assist pensioners, disabled people, and low-income families.
Eight million homes could receive £650 if they pass eligibility criteria; the same number of pensioner households will be given £300 in addition to their Winter Fuel Payment; and six million people on disability benefits will get £150.
This winter, three million households on particularly low incomes will also be eligible for a £150 Warm Homes Discount.
Ofgem advises those who are really worried they cannot afford their bills to get in touch with their supplier. The providers can offer payment plans that would be affordable and offer ‘emergency credit’ for those on prepay meters who cannot afford to top up.
British Gas Energy has also recently announced it will donate ten per cent of its profits to create grants for customers in need. The financial packages are expected to be an average of £750 per household and will go towards those in greatest financial need first.
For an emergency plumber in Richmond to fix your boiler and keep costs down, get in touch with us today.