Lancaster charity calls for urgent Government action to support the most vulnerable this winter

It follows energy regulator Ofgem announcing a four per cent rise in the energy price cap to come into force on October 1.

This announcement comes as households are still reeling from a 13% increase introduced earlier this year, with effects already felt throughout the economy

The energy price cap is a limit on what suppliers can charge for gas and electricity and it determines the energy prices of roughly 22m households.

These households are now facing energy prices at a three year high, with prices at levels not seen since winter 2023.

The average household energy bill is estimated to increase by around £60 per year and senior energy advisor Emily Wise says this cost risks pushing many households over the edge.

“We were expecting this news, but it is a real concern to us,” she said. “We are seeing more and more clients in crisis as global events bring fresh challenges to already stretched budgets. The cost of living crisis hasn’t gone away, in fact many of our clients are at breaking point.

“In January alone we saw 1,349 people in this district come to us with debt problems, many feeling like they are just ‘living on empty’ and worrying about what the future holds.

"We’re seeing people in full time work who are struggling to pay for essentials, families sitting in cold, dark homes to save money, and we’re making record referrals to food banks.”

According to Citizens Advice North Lancashire, around 11,000 people in the Lancaster and Morecambe district find that their income doesn’t cover essential spending, with thousands more living on empty, only escaping a negative budget by cutting their essential spending back to unsafe levels.

Citizens Advice North Lancashire is calling on the Government to provide targeted support to struggling households ahead of the autumn budget.

The charity’s policy recommendations include expanding eligibility for the Warm Home Discount, implementing an energy debt relief scheme and establishing a discounted price cap for the most vulnerable households.

Citizens Advice research and campaigns team member Wilson Colley has been working on a report addressing the cost of living crisis. He emphasised that Government measures must address all aspects of the cost of living to make a real impact.

“In order to truly face the cost of living crisis, the Government also needs to introduce broader cost of living reforms such as bringing Local Housing Allowance rates in line with average rent prices and introducing broader benefits reforms to ensure that payments are in line with current costs,” he said.

The government has already introduced some measures to address the cost of living, including cutting the VAT on electricity bills, taking an estimated £45 off bills. However, Wilson argues that the Government needs to go further.

“Whilst we welcome these steps from the Government, it is clear that more action is needed,” he said. “The benefit from the VAT cut will likely be swallowed up by the price rises, and our most vulnerable clients will need much more support to avoid crisis.”

For advice, email [email protected] or call 01524 481508 or visit a CAB office in either Lancaster or Morecambe, Tuesday to Thursday, 10am-2pm.

Emily added: “The cost of living crisis is still very much with us, and salaries and benefits have not kept pace with costs. We will be nervously anticipating announcements from the Government on better support ahead of the budget in October.”