Debt experts warn some households won’t be able to withstand energy bill changes unless they act
While the energy price cap has dropped by nearly seven per cent this month, saving the average household around £117 annually on their energy bill, experts are warning that thousands won’t be able to stay afloat if the cost starts rising. Debt charity Money Wellness warned that nearly half of the people it helps are already in arrears, with some owing up to £15,000 in total debt.
Sebrina McCullough, director of external relations at Money Wellness, said: “Many households are already living on a knife-edge. If energy prices rise further after July, tens of thousands of households could be forced to make stark choices between heating their homes, buying food, or keeping up with other essential bills.
“Without targeted support, these pressures risk pushing vulnerable families into crisis, with long-lasting consequences for their financial and personal wellbeing. Anyone worried about coping with bills or debt should seek help as soon as possible, as support is available to guide households through these challenges.”
The debt expert highlighted six key ways households can try lower their energy bill and avoid the ‘knife edge’, urging families to act as soon as possible and not just when the situation becomes dire.
Contact your supplier
Energy suppliers legally have to work with customers who are struggling financially to try to avoid arrears from piling up. The expert urged people to contact their energy supplier for this support early, adding: “Don’t wait until you’re behind.”
Customers may be able to get repayment plans put in place that match what they can realistically afford to pay on their energy bills. Suppliers may temporarily reduce or pause payments or provide emergency credit for households on prepayment meters.
Suppliers can also signpost and help you in claiming other appropriate support, like access grants or hardship funds.
Early advice
Similarly, the experts urged people not to wait until their debts are piling up. Households already in arrears can get free, impartial debt advice from the likes of Money Wellness and other debt charities that can stop the arrears from spiralling.
Fix payments
The debt expert said: “Setting a fixed direct debit or payment plan gives certainty over what’s going out each month, making it easier to budget and avoid unexpected spikes.”
Check entitlements
Many people may be entitled to extra support from the government through schemes like Warm Home Discounts, Winter Fuel Payments and local council grants. However, households simply may not realise they qualify and need to apply for the support.
Money Wellness has been able to help people find an additional £3,000 a year on average for customers. There are a number of online tools that can help highlight what you could be eligible for.
There’s also a number of crisis support systems available from local authorities. This may be through the new Crisis and Resilience Fund, which can provide cash, vouchers for prepayment meters or help with fuel bills. This may differ from council to council.
Energy-saving measures
Small changes can add up to savings in your energy bill. This can include things like switching off unused appliances, using LED bulbs, draught-proofing doors and windows, or boiling only the water you need.
Some energy companies even provide free energy-saving measures, including electric blankets, smart sockets and insulation to help vulnerable or low-income households. Speak to your supplier to find out what they can offer.
Check your budget
The debt experts urged households to review their incomes and outgoings to see if there are non-essentials they can cut back on to free up money for necessities.
