Rising cost of energy bills

The cost of living crisis in the UK continues to deepen, with energy bills becoming a significant burden for households. Predictions indicate that energy bills will rise by 9% in October, bringing the average annual cost to £1,714 per household. This increase is just one of many that has taken place since the Russian invasion of Ukraine, which has severely disrupted global energy markets, leading to skyrocketing prices.

The invasion has had a profound impact on the global energy supply chain. Russia is one of the world's largest producers of oil and gas, and the conflict has led to sanctions and supply disruptions, which have in turn driven up the cost of energy across Europe and the UK.

 

Energy debt In the UK at a record high

These rising costs have left many struggling to keep up with their energy bills, and it has led to a record high of over £3 billion in accumulated energy debt across the country.

For many, the situation has become dire, with some households being forced to live without energy due to the unaffordable costs. The prospect of energy prices rising further in October is alarming, especially for those already in debt or at risk of falling behind on payments.

 

What to do if you are struggling to pay your energy bills

If you find yourself unable to pay your energy bills, it is crucial to take action immediately. The first step is to contact your energy supplier. Energy companies are obligated to work with you to find a solution that allows you to repay your debt while continuing to pay for your current energy usage. When you contact your supplier, it is important to provide them with a clear picture of your financial situation. This will help them create a realistic and manageable payment plan that suits your circumstances.

A payment plan typically involves agreeing to pay a certain amount on a weekly or monthly basis. This can help you manage your debt more effectively while ensuring that your energy supply remains uninterrupted. Your plan could mean paying £30 each week, £20 to pay for your current energy bills and £10 to cover repayment costs.

However, if you do not set up a payment plan, your supplier could threaten to cut off your energy supply, which could leave you in an even more difficult position.

There are several ways to reduce your energy usage which can bring down the cost of your payments. This could make it more manageable to afford repaying debt whilst keeping up with current payments too.

 

Fuel Direct Scheme

For those who are on certain benefits, there is an additional option to consider: the Fuel Direct scheme. Through this scheme, a portion of your benefits can be used to pay your energy bills directly.

If you are one of these benefit schemes you could be eligible;

  • Income-Based Jobseeker’s Allowance
  • Income Support
  • income-related Employment and Support Allowance
  • Pension Credit
  • Universal Credit

This can be a useful way to ensure that your bills are paid on time, but it is important to carefully consider how this will impact your overall budget. Having an amount automatically deducted from your benefits may mean adjusting your spending in other areas to ensure you can manage your finances effectively.

 

The rising cost of energy is a challenge that many are struggling to cope with, but taking proactive steps can help you manage your debt and ensure that your household remains warm and powered. By communicating with your energy supplier and exploring available options, you can create a plan to address your energy debt.