The “warning lights are flashing red” as the number of workers seeking crisis support has more than doubled in two years, according to a charity.
According to Citizens Advice, 6,983 workers were referred to crisis support between July and September this year.
This compares to 2,780 people in the same period in 2020.
The latest numbers come as the cost of living is rising at its fastest pace in 40 years.
“Every day, our advisors hear stories of people who skip meals, skimp on essentials, and then come to us when they just can’t save anymore. It can’t go on like this,” said Morgan Wild, head of policy at Citizens Advice.
“We’ve seen the difference government support can make, but the warning lights for the future are still flashing red,” he added.
The charity also said that the number of people supported so far this year has already exceeded that of the last three years.
- A recession looms as the UK economy begins to contract
- Why are prices rising so much?
The latest figures also provide a stark comparison to last year when 4,291 people were referred in the third quarter.
The charity also warned that the number of people it supports could triple if the government decides not to increase benefits in line with inflation, which measures the cost of living.
The government has not committed to increasing benefits through this measure, but the chancellor is expected to announce her decision in the autumn statement on November 17.
Just over 9,000 unemployed received crisis support from the charity in the third quarter of this year, compared with 6,190 last year, according to the latest cost-of-living data.
The cost of living is rising at its fastest rate in 40 years, mainly due to rising energy and food prices, with inflation currently at 10.1%.
A government scheme to limit typical household energy bills to £2,500 a year has been in place since October, but is due to expire in April next year, with more targeted support to follow.
In England, Scotland and Wales, everyone’s energy bill will be reduced by £400 over six months, with an additional £650 support for low-income households.
Citizens Advice said its data shows government support is helping, but that the impact is limited, according to the numbers, and there are concerns about what will happen when support measures end.
“We need measures that match the scale of this crisis. At a minimum, benefits in next week’s fall statement must be increased in line with inflation, and more energy support should be offered to those on the lowest incomes,” Wild said.
The charity said that as energy bills soar, more and more people are looking for practical advice on how to make their homes more energy efficient to cut costs.
There are also still record numbers of prepaid gas and electricity customers who cannot afford to top up their meters.
The number of people who couldn’t afford to top up their prepayment meters fell slightly in October, which is attributed to the first tranche of government support payments, but added that it was still the third-highest month on record.
So far this year, the charity has already seen more people fail to charge than the total number of people seen over the previous five years combined.
In addition to the number of people who are unable to recharge, the charity said it is concerned by the high number of people who have been forced to install prepaid meters because they are indebted to their energy companies.
This week, the BBC reported that a growing number of homes are having their smart energy meters switched to prepaid remotely by their supplier without their permission.
Citizens Advice said that energy debt is growing, its total is now almost double what it was in 2019, and that overall there has never been a higher proportion of people in negative budgets – with more material spending than income in.
Add Comment