Drop in energy price cap will do little to alleviate pressure on households, says StepChange
25 August 2023
StepChange Debt Charity has responded to the news from Ofgem that the energy price cap will fall to £1,923 from October.
Richard Lane, Director of External Affairs at StepChange Debt Charity, said:
"The slight drop in the energy price cap announced today by Ofgem is welcome, but will do little to alleviate the immense pressure on millions of households, who are fighting just to keep their heads above water. The average energy bill will still be nearly double what it was 18 months ago, and many households have built up substantial arrears as a result - among new StepChange clients, over half (55%) are behind on their dual fuel bills. When put into the context of the multitude of recent price rises, the chance of being in a position to pay off energy debt for many low income households has become slim.
"This is why it’s vital the government considers the continuing impact that inflation and sky-high energy bills is having on low income households’ finances, and is ready to step in with further targeted support. For those already struggling with significant energy arrears, Ofgem must ensure energy firms don’t make things worse by seeking unaffordable debt repayments. Going forward there needs to be a more sustainable solution to shield the most financially vulnerable people from sudden hikes in bills, which is why we’ve joined several other charities in calling for a social tariff on energy."