Leeds charity warns that people choosing between 'heating and eating' as energy prices soar

A debt management charity has been “inundated” with inquiries from people choosing between “heating and eating”.
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It comes as energy regulator Ofgem confirmed that household energy bills will soar by £693 per year from the beginning of April.

The regulator was forced to hike the energy price cap to a record £1,971 for a typical household as gas prices soared to unprecedented highs.

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The decision is likely to impact 22 million households across Great Britain, and applies to those who are on their energy supplier’s default tariff.

“We know this rise will be extremely worrying for many people, especially those who are struggling to make ends meet, and Ofgem will ensure energy companies support their customers in any way they can,” said Ofgem chief executive Jonathan Brearley.

“The energy market has faced a huge challenge due to the unprecedented increase in global gas prices, a once in a 30-year event, and Ofgem’s role as energy regulator is to ensure that, under the price cap, energy companies can only charge a fair price based on the true cost of supplying electricity and gas.”

Sylvia Simpson, project director at Leeds-based charity Money Buddies, told BBC Radio 4’s Today programme that the charity is even seeing people with incomes struggling to pay their bills.

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She said: “We see it in clients coming to us every day, we are inundated with people coming to see us.

“We had one recently where she was choosing between heating her home or eating a warm microwave meal as she turned the fire off to turn the microwave on.

“Lots of people are coming in with different inquiries relating to their budgets and how they can manage and it’s not just the poorest of people as well.

“We’re getting nurses, you know people that have an income as well, but are faced with that choice of whether to heat or eat.”

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Leeds West MP and shadow chancellor, Rachel Reeves, said: "Ofgem announce prices could rise to £1,971 per year.

"A breath-taking rise.

"Labour will keep bills low with a one-off windfall tax on oil and gas profits.

"The Tories are looking to buy now and pay later - loading costs on working families for years down the line."

The announcement was made shortly before Chancellor Rishi Sunak was set to announce help for households to deal with the massive spike in energy prices.

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The Government has for weeks been assessing what it can do to help customers. Potential solutions have included loans to energy companies and cuts in VAT or levies on energy bills.

However, as late as Wednesday night, some of Britain’s biggest energy suppliers had not been told what the Chancellor would announce.

Ofgem also plans to on Friday set out new rules which will allow it to change the energy price cap in between its regular six-month reviews.

The regulator pledged the power will only be used in exceptional circumstances, and five tests will have to be passed before it can step in.

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The price cap had already been set at a record high in October before the worst of the gas price spike had been seen in the market.

The latest rise had been largely expected by experts and companies, although the details were still to be confirmed.

Cornwall Insight, an analysis outfit, said on Wednesday that it thought the price cap would be £1,915 per household.

There are also worries about next winter, when experts predict bills could spike to as much as £2,329.

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The price cap change was originally planned to be announced next Monday, but in a surprise move Ofgem moved it forward without explaining why.

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