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Lower energy price cap is welcome - but households will continue to struggle

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Debt Free Advice welcomes Ofgem’s announcement to lower the energy price cap from 1 July. The service calls for more support to help households facing financial difficulties.

The latest price cap will set average household bills at £2,074 per year. This means for every £100 per month people pay today, they will pay about £85 per month.

This will be relief for some, but many people are still finding it hard because of the cost-of-living crisis, and these bills will still be troubling many people up and down the country.

Debt Free Advice has seen a 48% increase of inquiries this year so far compared to last year, with a 47.4% increase in clients with gas arrears and a 44.4% increase in those with electricity arrears.

The service has joined calls with Martin Lewis from Money Saving Expert and other charities for the government to postpone the 20% increases in energy bills on April. 

Ofgem’s today decision to lower the energy price cap is moving to the right direction. But many will still be facing unaffordable energy costs as the cost-of-living crisis is set to linger.

We urge Ofgem to lower the standing charges to make energy usage cheaper. More support and longer-term solutions are of course needed including energy vouchers for low-income families or those with arrears, and a social tariff to protect vulnerable households from debt and fuel poverty.

If anyone is struggling to keep up with energy bills, seek help from free independent debt advice service as early as possible. Debt Free Advice is there to provide support – our team is available 7 days a week, 8am to 8pm.

Matt Dronfield | Managing Director, Debt Free Advice

Debt Free Advice can be reached via phone or WhatsApp on 0800 808 5700. The service is available through phone, video chat, web chat and face to face in their advice centres across London. Their expert advisors are always ready to give free, impartial advice for the best solutions available.

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