1000s more households set to enter fuel poverty

Within the last couple of months, the six major energy providers in the UK have implemented price rises in response to the rising cost of wholesale gas. As a result, the average amount spent on energy bills each year has risen by 38%.

Currently in the UK, over 4 million homes live in fuel poverty, which is the term used to describe households where more than 10% of monthly income is spent keeping the home heated to recommended standards; and experts are predicting that the recent prices increases will push a further 400,000 households into fuel poverty this winter.

The changes so far:

Switch providers and save
If you haven’t paid much attention to your energy bills lately, now is the time to take a bit of time to make sure you are on the cheapest tariff available in your area. Now that all the major players have unveiled their price rises, it is a good time to switch providers, as it is much easier to compare tariffs across the board.  There are plenty of independent comparison sites that will show you the most affordable plans in your area.

Discount and capped rates
Keep an eye out for capped or discount rate tariffs, as many suppliers are looking to capture switching customers with deals such as these.  This will protect you from any further price surges in the coming months.

Things to keep in mind
In order to obtain the cheapest tariff, you should consider a duel-fuel plan and pay by monthly direct debit. If you choose this option, you will be paying an estimate usage, so be sure to keep an eye on your bill and check with your provider regularly to ensure that your account has not gone too far into credit or debt.  If you prefer to pay for your exact usage, opt for a quarterly bill and double-check the actual usage by checking with your provider each time you receive a bill.

Struggling with your bills?
If you are struggling to keep your house heated due to the price rises, be sure to contact your provider as soon as possible. If you are behind on your bill payments, they should allow you to orgainse a debt payment plan to ensure your heating is not cut off.

There are also a few organisations you can contact if you need more help. If you are a low income earner you may qualify for a grant or discount to help with your energy bills. See the local branch of your consumer charity for further information.

If you are over 60 or have a relative who is, make sure you/they are getting your Winter Fuel Payment, which is an annual payment to help with household heating bills. See Age Concern for more information.