Cost of living crisis

Cost of living crisis – Karen Wilkins (506 words)

Life is complicated –we can help. We're part of a network of charities, a community – we provide free and confidential advice in person, on the telephone or on-line. People rely on us because we're independent and totally impartial.

New analysis from National Citizens Advice shows that 1 in 4 (24%) people in the UK simply won't be able to afford to pay their energy bills in October based on current forecasts.

The figure could jump to 1 in 3 (34%) people in January when prices are predicted to soar above £4,200 (and this number seems to be increasing on a daily basis). These projections take account the energy rebate and cost-of-living payments offered by the government, showing that spiralling costs are rapidly outstripping the support on offer. Bearing the brunt of rising energy bills will be 3.2 million disabled people and 4.4 million families with children set to be unable to afford October's hikes.

Citizens Advice says that future support must target those who need it most. Alongside further interventions from the government to help people with bills, it is calling for Ofgem to ensure that people are protected from the most serious consequences of falling into arrears. This includes a suspension of forced installations of prepayment meters.

The alarm is also being sounded that rising prices will drag more people into dire circumstances – we already have reports of people needing crisis support, such as food bank referrals and fuel vouchers, who've never previously contacted Citizens Advice.

We are often asked about The Don't Pay campaign, which is a movement urging millions to join the "mass non-payment strike" when energy bills rise again on 1 October. We recognise why some people might feel they're running out of options but we'd always encourage people as a first port of call to contact their energy supplier because they have to help you come to a solution. Try to negotiate a deal that works for both of you, whether that's reducing your payments in line with what you can afford or finding a way to pay off any debts you've built up. If you're worried about having this conversation, then we at Citizens Advice Portsmouth can help.

If you cancel your direct debit, you might be charged a fee. It's also likely that if you move from direct debit to a different payment method you will end up paying more. If you build up arrears to your energy supplier they can take action like moving you onto a prepayment meter or, in rare cases, they could disconnect you. There are clear rules around this though. Your supplier can't make you move to prepayment if it wouldn't be safe or practical; for instance, if an illness or disability means you'd be at risk if your gas or electricity was cut off.

There is further information about this on the Citizens Advice website.