This winter, millions of vulnerable UK households using prepayment meters may find themselves spending nearly a third of their incomes on energy bills.
With dropping temperatures nationwide, the Resolution Foundation warns that higher gas and electricity prices combined with increased energy usage during colder months will disproportionately affect poorer families.
Approximately 4 million households with prepayment meters are expected to allocate over 30% of their income towards energy costs from December to February, after accounting for housing expenses.
Given that prepayment meters are more common in low-income households, this financial strain could lead to families struggling to afford heating and lighting in their homes.
Rising energy prices due to global events have added pressure on households, prompting Ofgem to announce a 1.2% increase in the price cap starting January next year.
While the price cap has been adjusted following market fluctuations, it remains significantly higher than previous years, impacting both direct debit and prepayment customers.
2024-12-24 01:00:39
Source from www.theguardian.com