Families having cold showers and borrowing money

Families having cold showers and borrowing money

Experts have cautioned that households may face increased difficulties this autumn due to rising energy prices. Recent data indicates that some families are adapting by taking cold showers and borrowing money to meet their energy bills. Leaders from the energy charity Severn Wye predict that the situation will deteriorate further as energy costs rise by 2%.

Bethany Walker, a Gloucestershire resident currently on maternity leave with a three-month-old baby, noted her family is avoiding hot water to manage their gas bill. She explained that her partner has stopped using hot water entirely, in an effort to reduce heating costs. Walker mentioned an existing balance owed to their energy supplier attributed to a price increase from the previous Christmas. Despite their challenges, they do not qualify for Universal Credit and have been borrowing money from relatives.

The energy regulator Ofgem reported that it is working on addressing rising consumer debt. The new energy price cap means the average household will pay £1,755 annually, reflecting a £35 increase from the previous cap. In response to these pressures, Ofgem has mandated suppliers to enhance customer care and provide financial assistance to those in need.

In June, the government announced an expansion of the Warm Home Discount scheme, intending to provide £150 off energy bills for more households this winter. However, some individuals, like Hayley Huntley, a mother of six living in Gloucester, have stated that this discount does little to mitigate their overall energy expenses, with bills already totaling £1,900 each for both gas and electricity.

Sandy Ruthven from Severn Wye highlighted that demand for the charity’s support services, which offer free energy advice and debt assistance, has notably increased this summer—a departure from typical trends. The organization anticipates seeing up to 50% more individuals seeking help compared to last year, as many struggle to cope with escalating energy bills.

Source: https://www.bbc.com/news/articles/cj4y7yj81zvo?at_medium=RSS&at_campaign=rss

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