Energy bills rebate is ‘not enough’ – Britons call for more support | Personal Finance | Finance
Every household is to receive £400 to help with the cost of living crisis, but more than half of consumers say this is not enough, according to new research. The study by comparison site Uswitch.com found that more than half of households (55 percent) need more support, with the energy price cap set to hit £3,500 in October.
A third said that they are feeling anxious about paying their energy bills this winter, with 884,000 households already having missed payments.
A Government support package unveiled earlier this year also included a one-off £650 payment for people on low incomes.
The research found that almost a fifth of households are worried about being forced to move to a prepayment meter this winter, with providers already beginning this process for more than one million households.
The new Prime Minister will be unveiled on September 5, ten days after the new energy price cap is announced, on August 26.
Seven in 10 respondents said they want to know where Liz Truss and Rishi Sunak stand on the energy price cap before the August announcement.
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The £400 energy bill support set out in May was based on Ofgem’s prediction that the price cap was likely to hit £2,800.
But with experts predicting the price cap could reach £3,500, this could mean an extra £700 shortfall for households.
Uswitch is calling for the universal £400 support to go up to £600, with the support spread across the six coldest months of the year, when people’s energy bills are highest.
The group is also urging ministers to increase the payments to vulnerable Britons from £650 to £950.
Richard Neudegg, director of regulation at Uswitch.com, said: “It is absolutely clear that urgent measures are needed to get everyone through this winter, while a long-term roadmap for how policymakers might solve the crisis is put in place.
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“The Government did the right thing by stepping in with wide-reaching support to try to help ease the blow.
“However, this support now looks like a severe under-estimation of what consumers need.”
The group warned that this could be “the most expensive winter in living memory” for consumers.
Mr Neudegg said: “If the cap ends up being at the higher end of predictions, the support should reflect that and increase proportionately.
“This winter, suppliers should commit to stopping forced installations of prepayment meters for customers who are struggling to pay their bills.
“For those in vulnerable households, the lights must stay on this Christmas.
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“The country simply cannot wait for the new Prime Minister to be selected.
“We call on both Rishi Sunak and Liz Truss to urgently work together and agree on extra energy bill support before the new price cap level is announced on August 26.”
Mr Sunak is proposing to scrap VAT on all domestic energy bills for the next year, which he says will save the average household £160.
He said: “This temporary and targeted tax cut will get people the support they need whilst also – critically – bearing down on price pressures.
“As Chancellor I knocked £400 off everyone’s energy bill and provided support of £1,200 for the most vulnerable households. This additional VAT cut will help deal with the current emergency.
“I will also begin undertaking major supply side reforms targeted at the rising cost pressures families are facing.
“That means urgently getting more people off welfare and into work and tackling the supply chain crunch.”
Ms Truss has said she would scrap the green levies to reduce the cost of energy.
She is also proposing to reduce taxes by scrapping the Health and Social Care Levy on National Insurance.
Express.co.uk has contacted Ms Truss for comment.
Other long term solutions to help Britons with soaring energy bills suggested by Uswitch.com include insulating more homes, and incentivising suppliers to offer better deals.
