Norfolk foodbank warns energy price rise will put charities under more pressure

The typical household will pay more than £1700 a year for their gas and electricity

Author: Tom ClabonPublished 1st Oct 2024

A foodbank in Norfolk is warning that charities across the county will now be under increased strain, thanks to today's increase in the typical household electricity and gas bill.

Regulator Ofgem's raised the price cap, meaning the typical household will pay more than £1700 a year for their gas and electricity.

"We are expecting there'll be more people in extreme need

Hannah Worsley is from Norwich Foodbank. She says demand on their energy support scheme has already been increasing: "We had already helped ten people in September and in last October and November, we helped 37 people with paying their energy bills.

"With changes to support and the energy price cap, we are expecting there'll be more people in extreme need.

"Our vision remains that there should be an end for the need for foodbanks. Unfortunately, we're worried that we're now going to be busier than ever."

Why have energy prices gone up?

The latest cap is 6% or £117 lower than it was compared to the same period last year.

The price cap sets a maximum price that energy suppliers can charge consumers for each kilowatt hour (kWh) of energy they use.

It does not limit total bills because householders still pay for the amount of energy they consume.

From today, households on a standard variable tariff that pay for their electricity by direct debit will pay on average 24.5p per unit, with a standing charge of 60.99p per day.

For gas, the average will be 6.24p per unit with a standing charge of 31.66p per day.

Ofgem said rising prices in the international energy market, due to heightened political tensions and extreme weather events, were the main driver behind the decision.

October's price cap will be significantly lower than during the peak of the energy crisis, which was fuelled by Russia's invasion of Ukraine in February 2022, driving up costs in an already-turbulent market.

However, experts think there is likely to be a further increase in January, with more rises possible early in the new year due to escalating tensions in the Russia-Ukraine war.

Citizens Advice has said it was particularly concerned about households with children and young people and those on lower incomes, who were most likely to struggle with their heating costs.

Millions of pensioners are also facing a winter with less support after the new Government decided to scrap winter fuel payments for those who do not receive pension credits or other benefits.

About 10 million pensioners will miss out on the payments of up to £300 this year.

Advice for those struggling:

Ofgem chief executive Jonathan Brearley has urged consumers to "shop around" and consider a fixed-rate tariff that could save money, adding that the regulator was working with Government, suppliers, charities and consumer groups to do "everything we can" to support customers.

The Government says there's a range of support available for those struggling- including 'The Warm Home Discount Scheme', which opened today

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