Thousands across the UK at risk of fuel poverty as new energy price cap revealed
Thousands across the UK at risk of fuel poverty as new energy price cap revealed Feb 03, 2022
The 2.7 million households estimated to be in fuel poverty will dramatically increase in April this year.
With the energy price cap rising to £1,971 per year as announced today, annual energy bills could increase by £693 for those on default tariffs and £708 for customers on prepayment meters.
The increase is driven by a record rise in global gas prices over the last 6 months, with wholesale prices quadrupling in the last year.
Today’s announcement will cause thousands of more households to be plunged into fuel poverty.
Fuel poverty is characterised by an inability to afford energy bills which often results in people falling into debt or choosing to turn off the heating and suffer the effects of a cold home.
Support schemes exist to help households in fuel poverty such as the Warm Homes Discount and the Cold Weather Payment, however, those critical of the Government argue this doesn’t go far enough.
Duncan McCombie, CEO of YES Energy Solutions said: “With millions across the UK already suffering from fuel poverty, this price cap rise will bring even further hardship.
“Families who may have been able to pay their energy bills comfortably could soon find themselves struggling to keep up with payments.
“We are urging the Government to intervene, however, householders should check they are receiving the help that already is available to help pay energy bills or access funding for home upgrades to improve the efficiency of their homes.”
The Chancellor, Rishi Sunak recently announced a one-off £200 discount and a rebate on council tax bills which is all part of a packaged designed to mitigate some of the impact of the £700-a-year rise in the average household’s energy bills.
Click here for more information on the past changes in the energy price cap.