MILLIONS of households face financial uncertainty with energy bills now forecast to hit £5,000 by next spring.
The government is being urged to take action to protect families from rising energy bills.
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Bills are set to reach £5,038 from the start of April next year, after already rising to £3,624 in October, according to experts at Auxilione.
The last package of support for household energy bills was announced in May, when Ofgem thought the price cap would reach just £2,800 in October.
There are also warnings that energy bill direct debits could rise before October to keep up with the expected rise.
But with new and higher predictions coming out, calls for further support for households are growing.
Consumer champion Martin Lewis likened soaring energy bills watching the pandemic taken grip in Europe in 2020 while the UK carried on with life as normal.
The MoneySavingExpert founder said ministers were acting like “zombies” as the “cataclysmic” problem mounts
Gas and electricity bosses are being hauled in for crisis talks with Chancellor Nadhim Zahawi and Business Secretary Kwasi Kwarteng today.
They want the fat cats to submit a breakdown of their expected profits and payouts as well as their investment plans for the next three years.
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They may not all be there in person but there’s little doubt which three bosses are facing the brunt of the public’s fury — Centrica’s Chris O’Shea, Shell’s Ben van Beurden and Bernard Looney of BP.
Combined, the three executives earn more than £15million a year, thanks to extraordinary profits from the sky-high prices of fuel.
Jane Tully, director of external affairs and partnerships at the Money Advice Trust, the charity that runs the National Debtline, said further intervention is “urgently needed” to help with rising costs.
She added: “Government support announced so far does not get close to matching the scale of the challenge households now face.
“Further targeted support is needed for those on the lowest incomes, including significantly raising benefits and additional direct support to help households afford energy bills this winter.”
Meanwhile, Richard Lane, director of external affairs at debt charity Stepchange, said it has been “clear for some time that there needs to be further support”.
But what solutions could politicians reach for, and how much would they help?
Social tariff for hardest hit households
A temporary cheaper social tariff could cut energy costs for the UK’s poorest households by £1,000 a year.
How much does it cost? £8billion (based on 8million households)
Bill saving: £1,000 a year
Scrap the energy price cap
The Government could intervene to scrap the planned rise in October – but industry experts say that this is dangerous as either the government or firms will have to foot the bill.
Bosses say that firms WILL go bust if they can’t raise prices.
How much does it cost? £42billion
Bill saving: £1,645 this winter(£3,616 – £1,971)
£2,000 price cap on bills
Applying a £2,000 price cap on bills, which was the peak pre the Ukraine war.
How much would it cost? £36billion
Bill saving: £1,616 this winter
Remove VAT on energy bills
Cutting VAT on energy bills could save households £154 a year.
How much would it cost? £4billion
Bill saving: £152 a year
Increasing cost of living support for households
Millions will get a £400 energy rebate, while 8 million on benefits and low-incomes get £650 extra.
Brits with disabilities will get £150, while pensioners get £300.
But experts argue that this isn’t enough – with energy bills set to rise by 95% again this winter, many are calling for support payments to be doubled.
This could be funded by a second windfall tax.
How much would it cost? £16billion
Bill saving: Up to £1,450 per household
How can I get help with my energy bills now?
If you’re worried that you won’t be able to afford your energy bills, we outline how you can get £3,200 in help.
Energy bill discount – £400
Over 29 million households will be eligible for a £400 discount on their energy bills.
This will be automatically taken off your energy bills from October.
Energy suppliers have been instructed to pay households the discount in six instalments.
This means households will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023.
The non-repayable discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
Those using a traditional prepayment meter will have to take action to get the cash.
They’ll need to redeem discount vouchers sent by their energy firm at their usual top-up point.
Energy bill grants – up to £1,500
Many energy suppliers have schemes in place offering you financial assistance if you’re falling behind or owe money for your bills.
You can get up to £1,500 from British Gas for example – and you don’t even have to be a customer.
The maximum grant is usually £750, but those facing “exceptional circumstances” can get £1,500.
While Scottish Power will wipe off up to 40% off eligible customers’ debts, capped at £750 per household.
Octopus customers can get cash grants of between £50 and £500, and at Bulb, you can get money to put towards your bills worth up to £140, and you can get your debts cleared which is capped at £2,000.
Eligibility for the help will vary from supplier to supplier – check out more information about who can claim in our explainer.
Household support fund – up to £300
Councils have been given a Household Support Fund that helps families with the rising cost of living.
The scheme, which has a £500million pot of money, is due to end on September 30, 2022.
You can get help from your council if you are struggling with your energy bills.
For example, residents in Blackpool can get as much as £300, depending on their circumstances.
However, you could get more – or less – than this if you live elsewhere, as it depends on what your council is offering.
To find out what support is available in your area, contact your local council.
Welfare assistance – up to £1,000
Many local authorities run welfare assistance schemes, which are available to people on a low income who have run into financial difficulties – or who have had to deal with a crisis.
While you could get up to £1,000 in some areas – which would come in handy for paying your rising energy bills.
As each council runs its own scheme – and decides what help to dish out – some families can claim more than others.
