Despite a decrease in domestic energy prices over the next three months, charities have issued warnings regarding the upcoming difficult winter. Under regulator Ofgem’s price cap, the annual bill for a typical household will fall to £1,923 from Sunday. While it is £577 lower than last winter, some government support has been cut and bills are set to rise again in January. However, cost-of-living payments for some could help cover part of the cost.
An energy bill for a typical household was £1,277 in winter 2021, which is high by historical standards. The price cap affects 29 million households across England, Wales, and Scotland, setting a maximum charge for each unit of gas and electricity that suppliers can charge. The typical annual bill is calculated on an estimate that the average household uses 2,900 kWh of electricity and 12,000 kWh of gas.
The Fuel Bank Foundation, a charity that provides financial support for those on prepayment energy meters, has spoken out about increased costs for those using direct debit. By now paying a very similar amount, prepaying customers can expect the cost of topping up to be roughly £250 per month, leading some to go without meals and showers to keep up. Fuel Bank Foundation’s head, Matthew Cole, says that “no money equals no heat, hot water or fuel to cook a hot meal.”
Charities are concerned that high energy bills over the past two years will continue to create ongoing problems for bill payers, even if energy prices dip in the future. MPs and a coalition of 140 organizations have requested that the government introduce a social tariff this winter on energy bills to aid the most vulnerable. The government claims to recognize “the cost-of-living challenges families are facing” and is offering targeted support for the most vulnerable, including the £150 Warm Home Discount and up to £900 in cost-of-living payments for millions of vulnerable households
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