New energy price cap increases costs for UK residents, leading many on pre-payment meters to ration energy use and face financial hardship.
Last winter saw a record high of at least 700,000 Brits on a pre-payment meter (PPM) turning off their energy at least once, stark figures suggest. Now, Brits are bracing themselves for another period of soaring energy bills, with a new energy price cap announced this week - but there are grants people can apply for to help. Within Ofgem's new cap, energy is set at £1,738 per year for a typical household who use electricity and gas and pay by Direct Debit. This marks a worrying increase of 1.
2% compared to the cap set between October 1 to 31 December 2024 (£1,717). In light of these stresses, the Resolution Foundation recently told the Express: 'Self-disconnection is not only a route to feeling cold and being unable to wash or shower, but is also linked to emotional impacts such as financial stress – especially when caused by a wait for benefits payments – and feeling shame or embarrassment.' 'But even when PPM customers are disconnected from the grid, bills continue to rack up. Standing charges accrue regardless of energy use, and if there is no money on the meter to pay for them then they quickly turn into arrears. This frequently adds to already-existing debts which is often the reason households are moved onto PPMs in the first place.' It's estimated that four million UK households that rely on PPMs will need to allocate over 30% of their income just to cover energy costs in the coming winter months. Further complicating matters, more than half of these PPM households are indebted to their energy suppliers, reducing the credit available for essential energy needs, the Resolution Foundation has pointed out. The pressure group further acknowledged: 'This seasonal spike forces families to either spend a very high proportion of their income to keep warm, or to endure cold living conditions that bring with them significant health impacts.
ENERGY PRICES UK ECONOMY PREPAYMENT METERS FINANCIAL HARDSHIP HEALTH IMPACTS
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