Yahoo Finance Energy bills rise to leave low income households £200 out of pocket
The poorest UK households will be left £209 short on their energy bills on average as prices rise and government support fades.
The energy bill support scheme which provided an additional £400 to all households has ended. Consumers will also still be paying almost double the amount they paid before the energy crisis began.
Combine the two and the poorest 10% of households will have to spend an average of £209 more on energy this financial year than last, according to consumer group Which?.
Higher costs could be especially difficult to manage for prepayment meter users — who are typically on lower incomes — as they cannot spread costs across the year and would see a spike in costs during the cold winter months.
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The government has announced that cost of living payments to those on qualifying benefits will continue. However, Which? pointed out that this will leave low-income households who are struggling to make ends meet but do not qualify for benefits out in the cold.
The consumer body is calling for an energy social tariff to protect the most financially vulnerable.
Which? director of policy and advocacy Rocio Concha said: “It's hugely worrying that consumers on the lowest incomes could be left over £200 worse off on their energy bills this financial year due to reduced government support.
“With millions of low-income households across the country already struggling to make ends meet, the government urgently needs to introduce a properly targeted energy social tariff to ensure the most financially vulnerable are able to heat their homes.”
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Citizens Advice has proposed a social tariff based on both household income and energy usage, moving away from benefits eligibility alone.
Which? is calling on the government to introduce a social tariff along these lines as soon as possible.
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