Ofgem’s 2% price hike mean typical household will pay £2.94 a month more for their energy from 1 October.
For a household with typical usage and paying by Direct Debit, it’s an increase of £35 a year.
But while this may seem small, StepChange Debit Charity has witnessed its clients increasingly struggle with energy debt for several years now. It said new figures showed a 32% rise in average energy arrears among those seeking debt advice over the last two years.
It has offered the following tips to anyone who is concerned they might struggle to pay their bills this winter.
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Ensure you are getting the best deal
Switching energy suppliers or tariffs could save you money. Check out a comparison site which has signed up to Ofgem’s Confidence Code to get unbiased quotes.
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Contact your energy company
StepChange said energy suppliers have dedicated support for customers who are struggling with bills. It could include payment plans, hardship funds, or access to grants – but contact them as soon as possible to assess your options.
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Check your eligibility for support funds
Contact your local council to see if you are eligible for any support through the Household Support Fund. It offers help if you cannot afford to pay for utilities, food and other essentials.
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Find out about a grant
Contact the British Gas Energy Trust to see if you may be eligible for a grant. You will first need to get debt advice from an organisation like StepChange and you must not be able to get a grant from your current supplier. However, you do not have to be a British Gas customer to be eligible.
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Avoid further borrowing
If finances are tight and you’re struggling to cover bills, StepChange advises you avoid using credit to pay for them. It may only worsen debt problems in the long run. Instead seek expert advice or to look into what support is available to you.
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Ask for help
Seek free and impartial debt advice from a debt advice charity like StepChange, which can help you get back on track and recommend a path forward for dealing with your debts.
Simon Trevethick, head of communications at StepChange Debt Charity, said: “Not only will people find they are having to switch on their heating now as the weather turns colder, but bills are also set to go up this month, which is another blow to household finances.
“Energy arrears are the most common type of debt across household bills that we see at StepChange, and people have had little respite from steep costs over the past three years.
“For anyone who is struggling or worried about energy bills, there is support available out there – contact your supplier, check to see if you’re eligible for any grants, and of course you can always get in touch with an organisation like StepChange. We help lots of people who are in the same boat, and we’re here to offer free and non-judgemental advice to help you get back on track.”
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