StepChange reacts to Ofgem’s change in the energy price cap

^{22 November 2024}

StepChange Debt Charity, the UK's largest debt advice charity, has responded to the energy regulator's decision to increase the energy price cap to £1,738 from January 2025.

Ofgem's announcement comes as StepChange client data, alongside nationally representative YouGov polling, shows that energy bills continue to be a heavy burden on household finances, particularly for people on lower incomes:

• Average energy arrears per StepChange client stand at £2,516 in October, an increase of 23% since the start of the year.
• YouGov polling of UK adults from September found that more than one in four (27%) people in receipt of benefits have rationed the amount of heating, electricity or water they have used to keep up with credit repayments in the last three months.

Reacting to the announcement, Chief Client Officer at StepChange Debt Charity, Richard Lane, said:

"News out today that the typical cost of energy bills will rise in the new year is a blow to consumers who are already facing considerable cost of living pressures. What's more, this decision comes as inflation trended above the Bank of England's 2% target this week, driven by rising energy bills."

"The cyclical nature of energy usage means consumers face generally higher costs over the winter period, and as a result this decision will have a two-pronged impact on consumers. First, it piles on additional financial pressure at an already difficult time, but it also reduces struggling households' ability to tackle existing energy debt."

"It's for this reason that alongside other sector partners we have consistently been calling on the Government to introduce targeted support for energy bills for those who need it most, alongside a Help to Repay scheme for those facing energy debt as a result of high costs over the last three years."

Notes to editors

1. YouGov polling surveyed a sample of 2,211 adults. Fieldwork was undertaken between 9th - 10th September 2024. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+). The subsample of those in receipt of benefits is based on 645 respondents.