Three of the UK's best known debt charities have joined forces to urge Ofgem to urgently increase protection for people with mounting energy bills. The news comes in the wake of speculation that household energy bills could rocket to £500 a month in January 2023, amid Russian threats to cut Europe's gas supplies.
Citizens Advice, the Money Advice Trust and StepChange Debt Charity have warned the October price cap rise will have a "disastrous impact" on the finances of millions of households, and said that energy arrears are now the most common type of household debt.
Ofgem's price cap rose by 54 per cent to £1,971 per year in April, and the expectation is that the upcoming price cap review next week will mean average bill of £3,244 in October, and potentially nearly £4,000 by next January. The charities fear that families will be forced into self-rationing or disconnecting from their energy all together, and are worried about the potential impact this could have on many people's physical and mental health, according to This Is Money.
