Energy Crisis Deepens as Millions Face Winter Debt
Record 7.4 million households struggle with essential costs as price cap rises and support measures are questioned.
Carla Rooney
Millions of UK households face a deepening energy crisis as winter approaches.
Ben Gallizzi stated, "Credit is the cushion that turns a frightening winter bill into a manageable one, but for millions, building a summer buffer for the winter simply hasn’t happened."
The government offers a "budgeting advance loan" for Universal Credit claimants facing an emergency lack of funds. All Universal Credit claimants received an above-inflation income boost of around 6.2% to the standard allowance in April.
From April, councils administer Labour’s new ‘Crisis and Resilience Fund’; a new ‘housing payment’ also launched across the UK. For water, every company operating in the UK maintains a social tariff by law, and discounts of up to 100% on council tax remain available.
Credit is the cushion that turns a frightening winter bill into a manageable one, but for millions, building a summer buffer for the winter simply hasn’t happened.
Despite these measures, 55% of billpayers hold credit this year, a decrease from 64% in 2022. Almost half, 43%, of billpayers plan to wear extra clothing instead of turning on their heating.
Forecasters predict a 22% increase in energy bills in January. The new prime minister announced a cut to energy bills and bus fares, which is expected to provide some relief to struggling households.
Further plans to alleviate rising costs are anticipated at the upcoming Budget on 28 October. These include a delay to the fuel duty increase and more targeted energy bill support.
Dame Clare Moriarty emphasised the severe impact, stating, "Our advisers are seeing disabled workers weighed down by massive energy debts, and parents who are working but still unable to cover the costs of basics for their family. That’s why we’re calling for a vital two-step approach this Budget."
Moriarty detailed this approach: "First, the Government must provide immediate, expanded crisis support. Second, it must deliver on its existing commitments to upgrade leaky, cold and inefficient homes by fully funding the Warm Homes Plan."
She warned, "The Government has promised to protect living standards, but failing to act on both these fronts risks causing immediate, avoidable hardship now and in future winters, for those who can least afford it."
The state pension will rise by 3.9% in April 2027, an increase of £488.80, in line with weekly wage growth between May and July this year. Benefit payment dates in November will proceed as usual; no bank holidays affect distribution.
For those in deep arrears, Ben Gallizzi advised, "If you are deeply in arrears on your energy account and not sure what to do, speak to your supplier early and ask for an affordable repayment plan. Find out if you could be entitled to support."
He also noted, "If you are on a standard variable tariff, it’s not too late to act. There are fixed deals on the market well below the predicted January cap."