Energy bills: Father shares anxiety over energy costs as price cap rises | Personal Finance | Finance
On Friday (August 28), Ofgem confirmed the price cap would skyrocket past £3,500 which will see peoples’ energy bills go up. This comes amid the growing cost of living crisis with the UK experiencing an inflation rate of 10.1 percent. One father is speaking out about how he is “extremely worried” about his growing energy costs and the anxiety he has over making payments.
Imran Afzal, 45, from Scotland, lives with his wife and two children and is one of the millions of Britons concerned about the pending rise to his energy bills.
Mr Afzal explained: “I was a civil servant for 16 years but a few years ago had to leave my job due to health conditions – depression and back issues.
“The current rise in cost of living is impacting me a lot. I am just about making ends meet due to all the price rises.
“I am not able to save because at the end of the month nothing seems to be left over. I am in receipt of welfare benefits, including Universal Credit, Personal Independent Payment and other means tested benefits.”
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The former civil servant cited the most recent energy price cap increase which saw the average household pay an extra £693 annually.
He added: “I am already feeling the effects of the last rise, which has made my bills go up. I am extremely worried as to what I am going to do in the winter.
“I will have to make a choice of not putting the heat on or to reduce things like my weekly grocery shop.
“I am more worried about my kids and how to overcome the rise in prices overall – it is such a worry.”
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Experts are breaking down the “catastrophic” costs which are coming in the direction of millions across the country.
Jon Rudoe, the co-founder of consumer champion Nous.co, said: “Beyond the real human costs of people being unable to heat their homes, this is simply unsustainable for the maintenance of consumer spending to fuel the economy.
“And when it is added to all the other pressures that are facing households, the potential effects could be catastrophic.
“The typical household might be out £1,000 in increased costs at the pump, a similar amount on their food bills, and could be staring at the prospect of their mortgage costs increasing by several thousand pounds even on an average mortgage of £250,000 the next time they come to change their mortgage.
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“The current state support on energy bills was calculated at a time when the energy cap was forecast to be far lower than the numbers being announced right now.”
Earlier in the year, the then-Chancellor Rishi Sunak launched a wave of new support payments to tackle the energy crisis.
Among those was a £400 energy bill grant which will be awarded to households in October of this year.
Furthemore, those in receipt of means-tested benefits like Mr Afzal should be eligible for the cost of living payment worth £650.
Other payments are available to those who have a disability or health condition and pensioners.
Older people are entitled to an extra £300 payment to help with the cost of living, while disabled Britons can get an additional £150.
Energy suppliers, such as British Gas and Scottish Power, are offering customers support with energy debt to also help consumers get back on their feet.
Liz Truss, the current frontrunner to become Prime Minister in the Conservative leadership race, has not ruled out introducing further support later in the year to tackle energy bills.
