Families braced for looming 13.5% energy price hike.
Households already battling the cost of living are facing fresh financial pressure this summer, as energy bills are set to rise again from July.
The increase to Ofgem’s energy price cap will push average annual household bills up by 13.5%, taking average costs to around £1,882 per year. Christians Against Poverty (CAP) say that rising bills will place even more strain on families already struggling to pay for essentials.
Now, those fears are becoming a reality for many more across the UK.
Sheena found herself in debt after needing to pay her rent ahead of time, which left her behind on payments. This spiralled into bills being missed:
The rising energy costs are hitting people hard. It sometimes gets to the point where you wonder what’s more important: prioritising other things or energy. Unfortunately, energy is a must.
Sheena highlights the exhausting cycle of trying to keep the power on:
I end up most times using my emergency money or even borrowing off my supplier to get to pay days. No matter how much you try to preserve your energy, it never seems to last. I’ve even borrowed money from family members to have energy.
After enduring five years of escalating anxiety, living in constant fear of enforcement agents and mounting debts, Sheena’s situation finally turned around when she contacted CAP for specialist debt advice.
Even from that first phone call I felt different, very hopeful and optimistic at that point.
Local CAP debt coach, Sam, visited Sheena to take away her letters and start the process to become debt free. Sam even went the extra mile to bring Christmas presents and Easter eggs for Sheena’s children during this time.
Stories like Sheena’s are becoming increasingly common as rising household costs continue to push more people into a crisis.
Highlighted in CAP’s latest client report, more people, including those in full-time work, are struggling to cover basic living costs, leading to an increase in priority debts such as council tax, utilities or rent payments:
50%
of adults in full-time work regularly feel anxious about their finances
26%
of UK adults report having debt they struggle to repay
48%
of budgets completed each month by CAP debt advisors are deficit budgets (expenditure is greater than income)
These figures highlight a stark reality: behind the data are millions of families facing impossible choices just to keep the lights on.
CAP is calling on supporters to respond this summer so those who are tipped into spiralling debt can receive free debt help, community support and hope during their toughest financial storms.
If you have been affected by issues raised in this story or are in need of help with your finances, find free local support near you.
