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More people are seeking assistance for their energy bill payments, according to Citizens Advice

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By Minipip
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More people are seeking assistance for their energy bill payments, according to Citizens Advice.

According to Citizens Advice, many more individuals will begin the winter with unpaid energy bills and some debt.

In the first half of 2023, a total of 46,431 persons with energy debts contacted the organisation for guidance, an increase of 17% over the corresponding time in the previous year.

An average yearly home payment is anticipated to be set at roughly £1,926 from October thanks to Friday's energy price restriction.

However, the average debt of individuals who sought assistance from Citizens Advice was £1,711.

According to the organisation, this is a third more than in 2019.

Since last spring, the amount of energy bills that some homes are behind on has been steadily increasing as a result of the high gas and electricity rates that consumers have been paying.

England, Wales, and Scotland's 29 million homes are subject to a price ceiling established by the energy regulator Ofgem. It is anticipated that a statement on Friday would decrease the cap, lowering the cost of each unit of energy for the three months starting in October.

Consultancy company Cornwall Insight noted that average bills might decrease by £148 annually compared to the present, but they would still be far more than they were before Russia's invasion of Ukraine.

Because of these high rates and the increasing cost of other necessities like food, 12% of respondents questioned by Citizens Advice reported using a loan or credit card to pay their energy bill.

More people who are already in arrears on their payments have contacted the charity so far this year than at this point in any of the four years prior. The same is true for people whose prepayment metres cannot be topped off.

Based on the report, there was a chance that debts would increase because consumers would have to pay back arrears in addition to the higher cost of energy consumption during the colder months and find the money to pay other necessary obligations.

In relation to a Citizens Advice analysis, households with small children and single parents in particular were more likely to have very high levels of energy debt and considerable monthly shortages.

More than one-third of houses, or 7.2 million, are expected to experience greater energy costs this winter than they did last, with the poorest households being the most severely impacted, according to research by the Resolution Foundation.

One in eight homes, based on the report, would face an increase in winter energy costs of at least £100.

Additionally, in line with projections from the fuel poverty charity National Energy Action, 6.3 million UK families will still be living in fuel poverty, up from 4.5 million in October 2021.

Hence, financial problems in the UK may go from bad to worse.

(Sources: bbc.co.uk, ofgem.gov.uk, citizensadvice.org.uk)


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