Energy price warning as expert says 'crisis is not over'
30.03.2024 - 07:59
/ manchestereveningnews.co.uk
Despite a huge £238 fall in the energy price cap at the start of April, millions of households will remain in debt or abject fuel poverty, according to Ofgem data. Poverty charity National Energy Action has said the ongoing energy crisis 'cannot be the new normal'.
From April 1, the energy price cap is set to fall from £1928 to £1690 for those on variable tariffs, which is a large drop, but still represents a much higher monthly cost than in January 2019 - when the average annual household energy bill was £1137.
In the two years since energy prices spiked, following the Russian invasion of Ukraine, people across the UK have struggled to pay their energy bills and accrued debt. According to Ofgem data, around 2.3 million households have racked up an average of £1200 in energy each - a total of £3bn in unpaid energy bills.
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Although the average bill is set to fall by around 12 per cent next month, fuel poverty charity National Energy Action says millions of households will be paying their energy companies more than at the height of the crisis as they start to repay huge levels of debt built up because of sky-high prices.
To make matters worse for people with limited incomes, cost of living payments of £900 for some households and £150 for those in receipt of disability benefits are coming to an end. A loss of income that is not offset by the reduction in energy bills.
According to National Energy Action’s research, six million UK households will be in fuel poverty from April 1.
According to YouGov polling commissioned by the fuel poverty charity, more than half (59 per cent) of people are rationing their heating, with one in six