Citizens Advice has revealed it has broken the record for the amount of crisis support given to consumers for the third consecutive month.
The consumer charity has referred 24,752 people to food banks or to other charitable support so far this month, compared to 24,185 in February and 23,986 people in January. March’s figure represents a 44% increase compared to the same time last year.
According to the charity’s research even with the support announced by government around 5 million people will be unable to pay their energy bills following a record increase to the price cap tomorrow (1 April), which is due to rise by 54%.
It expects this number will almost triple to a quarter of people in the UK – more than 14 million – if the price cap rises again later this year as expected.
The charity further highlighted how even in areas with low deprivation such as Hart in Hampshire which according to government figures is the least deprived council in England, it is seeing an influx of people seeking help.
One adviser said they had seen a “notable uptick” in people seeking debt advice, and needing energy grants or foodbank vouchers.
“Hart may be an affluent area, but we’re seeing a real imbalance between those who can and can’t afford the essentials,” they added.
“Ruinous”
Clare Moriarty, chief executive of Citizens Advice, said: “The energy price cap rise will be potentially ruinous for millions of people across the country. It comes just as another new, bleak record is set for people needing crisis support from Citizens Advice.
“The support announced so far from the government simply isn’t enough for those who’ll be hit hardest. With the long-anticipated price rises now hitting, many more people will face the kind of heart-rending choices that our frontline advisors already see all too often.”
Also expressing concerns about the level of government support is So Energy co-founder Simon Oscroft, who additionally called for emergency support for suppliers.
He said: “The support packages announced by government in February, whilst welcome, only cover a fraction of this bill increase so further support is needed for customers, particularly as the latest projections show that October’s price cap review will see monthly bills rise by a further £60 just as people are turning up their heating for the winter months.
“Emergency support should also be provided directly to suppliers, who are continuing to be forced to sell energy below market rates in order to comply with the price cap over the summer period. Without action now we will see further supplier failures, less investment and much less innovation in the market.”
Meanwhile ahead of the new cap British Gas has announced it is increasing its energy support fund by £2 million, taking the funding up to £6 million to help its most financially vulnerable customers.
The fund will provide thousands of British Gas customers with grants between £250 and £750 to help pay towards their energy bills.
Any British Gas energy customer with less than £1,000 in savings who is struggling to pay their energy bill is eligible to apply for a grant via the British Gas Energy Trust.
Centrica said more than 2,500 grants have already been given out with an average grant of over £550. More than a third of the recipients are on disability benefit and many are families – 30% are single parents and a quarter have children under five years old.
Centrica chief executive Chris O’Shea said: “The extra funding adds to the financial support and advice we already offer and ensures grants will be available for our customers as we go through the year.
“I’m proud of the way our colleagues want to help our customers, and we want all of our customers to know they shouldn’t be struggling alone. In addition to helping as many as we can financially, we will also point them in the direction of the right debt services and support that provides them with longer term help.”
Eon, which is raising its prices in line with the cap, also said it had a number of support options available to its customers.
“We know this will be difficult news for our customers and we’d urge anyone who is struggling to get in touch as there are ways we can help, including cold weather payments and targeted support such as through our Energy Fund. The government has a package of measures to help customers which is designed to help spread the cost,” they said.