Concerns rise for people already unable to pay for food and energy.
Following today’s announcement by Ofgem of an energy price cap rise of 6.4%, Christians Against Poverty’s (CAP’s) Head of Policy and Public Affairs, Kiri Adams, said:
“With 21% of UK adults already saying their income doesn’t cover basic essentials such as energy and food, according to new figures we recently released„ we are very concerned that this further increase to the energy price cap is likely to tip more families into debt.
“The new data which CAP commissioned from Opinium in December 2024 found that 11.6 million people in the UK reported having a deficit budget – that’s one in every five UK adults who do not have sufficient income to cover the costs of essentials. With 38% of those who are facing financial hardship saying it is due to the cost of essentials, and more than 2.7 million people in the UK saying they have borrowed money to pay for their energy bills, the 6.4% increase in the energy price cap is likely to push even more families into debt.
“Additionally, we are concerned that the price increases may put young people at a higher risk – 89% of whom were reported to be struggling with the cost of living, according to the Office for National Statistics in January this year. This is in line with the latest figures from CAP which found 36% of young adults are struggling with deficit budgets — meaning they are having to spend more than they earn – a far higher number than the 8% of over-55s in the same situation.
“CAP is calling on the Government to establish a protected minimum amount of social security, known as an Essentials Guarantee, so that the basic rate of social security always covers life’s essentials and ensures support is never pulled below that level. In addition, we would like employers to ensure wages are sufficient to prevent any worker from facing a deficit budget. Without this, it’s unlikely that people will feel more hope for the future. According to the Office for National Statistics, the average rating of hope for the future was just 6.6 out of 10.
“No one should be cold in the winter because they cannot afford to heat their home. No one should be caught in the vicious cycle of debt and poverty because their income does not cover the cost of the basic essentials we all need to survive. We must take action now.”
