Family power debt had reached £2.1bn earlier than the April value hikes
The quantity of power debt owed by UK households had reached file ranges even earlier than power value rises started kicking in from April 2022. That’s in response to new evaluation by marketing campaign group Debt Justice.
In accordance with Debt Justice, the newest information from power regulator Ofgem exhibits that the overall power debt owed by households grew from £1.5bn to £2.1bn within the twelve months to April 2022 – a 38 per cent improve.
In April, the worth cap was raised by 54 per cent, reaching £1,971 for the common family. Given the info analysed by Debt Justice wholly predates that rise, it signifies that many individuals have been already scuffling with their payments lengthy earlier than the latest invoice will increase.
It additionally raises additional questions concerning the authorities’s dealing with of the price of residing disaster. Power payments are set to rise to £2,500 for the standard family in October. Earlier this week, Liz Truss introduced the federal government can be freezing the cap at that stage for the subsequent two years. However with power money owed already rocketing properly earlier than this disaster – the federal government’s plan more and more seems inadequate.
Heidi Chow, Govt Director at Debt Justice known as for the federal government to put in writing off power debt. She stated, “Astronomical power payments are exacerbating Britain’s family debt disaster. The federal government can’t afford to disregard file ranges of power debt that may drive much more poverty and hardship for years to come back. Liz Truss’ plans should embody motion to cap power costs and write off power debt to offer everybody a preventing likelihood of conserving the lights on this winter.”
Chris Jarvis is head of technique and improvement at Left Foot Ahead
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