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People can’t wait for energy help – Citizens Advice

Many households can’t wait for the government to decide whether to provide more support to deal with energy bills, Citizens Advice said.

The charity said it provided more food bank referrals and crisis support in July than in 2019 and 2020 combined.

The warning comes after the industry regulator said energy bills could rise later this month, more than five weeks earlier than thought.

This week, household energy bills were forecast to reach £4,200 in 2023.

With the leader of the Conservative Party, and therefore the new prime minister, not due to be announced until September 5, charities say time is running out to help people who are already feeling price pressures, which are at their fastest in 40 years increases.

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“Many people can’t wait for the government to decide what support is needed this winter,” said Abby Jitendra, policy manager at Citizens Advice.

“We need the government to step in as soon as possible to help those on the lowest incomes. Every day that the government delays in telling us what the plan will be for this winter, every day that we see the price of the forecast increase is another day of concern for people.”

Simon Francis, coordinator of the End Fuel Poverty Coalition, said the “vacuum at the heart of government” is leaving millions in need.

He said while it’s common for customers on direct debit plans to pay more in the summer to offset higher winter consumption, energy companies should “not subpoena” before the price cap occurs and “if it’s unclear what action the government will take, to support families”.

On Thursday Prime Minister Boris Johnson called on energy companies to “act in the national interest” to ease pressure after meeting alongside Chancellor Nadhim Zahawi with chiefs of a range of companies including EDF, E.On, Scottish Power and National Grid and Business Secretary Kwasi Kwarteng on Thursday to discuss aid.

So far the Government has announced a package of measures to help households with rising living costs, including a £400 rebate on energy bills – but the amount was decided before price forecasts soared.

Mr Johnson said the government would “continue to urge the electricity sector to keep working on ways we can ease the pressure on the cost of living”.

However, the meeting brought no immediate concrete help for struggling consumers, with Mr Johnson acknowledging that any “significant tax decisions” would be a matter for his successor.

An industry source told the BBC: “It’s becoming increasingly clear that big decisions need to be made, but we don’t have a government with the capacity to take them to the end of the leadership race.”

Another said: “It was striking that BP and Shell weren’t in the room. The magnitude of their excess profits is symmetrical to the size of the problem we are facing. “It seems inevitable that they will have to be part of the solution – ie raise or reform the windfall tax.”

Both energy companies recently reported record profits, fueled by higher oil and gas prices, which have soared due to the war in Ukraine, prompting calls for another windfall tax on energy companies.

In recent months, post-invasion Russia has cut back supplies to Europe, and there are growing fears it could shut off taps altogether.

The potential of gas supply problems has caused wholesale prices to rise, leading energy companies to pass these costs on to customers – pushing up household energy bills by unprecedented amounts.

A new cap on the maximum price for gas and electricity a supplier can charge its customers for energy consumption in England, Scotland and Wales, known as the Energy Price Cap, is due to be announced at the end of August and come into force in October.

Analysts have predicted the October price cap to rise to £3,582.

Bills are expected to continue to rise when the cap changes again in January, with one consultancy, Auxilione, predicting a typical household could be paying £5,000 a year by next April.

Direct debits are typically charged in such a way that customers build up credit during the warmer summer months with lower consumption to spread the cost of higher energy consumption during the colder months.

Any increase in bills before October would help spread the cost of higher energy use during the winter months, industry regulator Ofgem said.

Customers can always request the return of their excess balance and contact their suppliers to change the distribution of their direct debit.