Rising energy bills could be the final straw for struggling families this Christmas

Millions of households across the UK are facing higher energy costs this winter, with further rises expected in the new year. Ofgem’s energy price cap rose by 4% in October 2026, taking the average annual bill for a household using gas and electricity to £1,723. Energy suppliers and industry analysts are now forecasting another increase in January 2027, but for people facing debt and poverty, the prospect of higher costs can mean difficult choices between keeping warm, buying food or covering other essential costs. 

At Christians Against Poverty (CAP), debt centre managers and debt coaches see first-hand how financial pressures and rising energy costs affect people and their families. Sally Murray, Debt Centre Manager at Bury St Edmunds Debt Centre, explains what rising energy costs mean for the people she supports, and why the need for practical, in-person help is particularly important in the run-up to Christmas.

For people already facing problem debt, rising energy costs can mean that people have to make even more difficult decisions about how to make ends meet. An increase in one household expense can leave people in a deficit budget, meaning that their income isn’t enough to cover essential outgoings.

As a debt centre manager, Sally works directly with people in her local community, visiting their homes, collecting their paperwork and supporting them on their journey to become debt free. 

Victoria is one of the people Sally has supported on her debt free journey, after an accident, redundancy and relationship breakdown left her facing debt.

Victoria became debt free in July 2025 after seven years of support. Sally sees first-hand how debt can affect every aspect of someone’s life, from their ability to afford life’s essentials to the loneliness and isolation that can make an already difficult time harder.

Sally continues, ​‘The news that energy bills are set to increase further could be the final straw, breaking already tight budgets and forcing people into unmanageable debt.’

As temperatures fall, the reality of rising energy bills can become even more visible. Households across the UK are forced to choose between heating their homes and paying for other essentials, while the added pressure of Christmas can leave individuals feeling they have little to look forward to.

With energy bills rising and further increases forecast for January, CAP is highlighting the additional pressure that this could place on families already struggling with debt and poverty. 

Even with the government’s measures on energy in the recent Autumn Budget, the current situation remains extremely difficult for CAP’s clients. Energy costs remain a major cause of anxiety and debt for far too many. 

Through the 2026 Christmas appeal, CAP is calling on supporters to restore warmth, connection and hope to those hit hardest. This appeal will help local churches support families in their communities that are experiencing debt and poverty, through free FCA-authorised debt advice and face-to-face, whole-person support. Will you restore warmth, hope and connection to someone like Victoria?

If you have been affected by this story or if rising energy bills are leaving you struggling to make ends meet, you don’t have to face it alone. 

CAP offers free, expert debt help to people struggling with problem debt, as well as money coaching sessions, working alongside local churches to provide in-person and holistic support. 

*Statistics taken from CAP’s 2026 client report, Stronger together