Millions ‘facing catastrophe’ as energy bill support is cut

MILLIONS of middle-class families are facing a ‘catastrophic’ hit to their finances as the Government scales back support with energy bills.

Dame Clare Moriarty, Citizens Advice chief executive, warned most households would see a £900 annual increase. She estimated around 3million would spend more than 10 per cent of their income on energy and, from April, would not be entitled to targeted help from the Government.

‘We know that’s going to be unsustainable for very many... we are talking about literally millions who are going to see catastrophic impacts,’ Dame Clare told the BBC. Energy regulator Ofgem said it would reduce the cap on the amount suppliers are allowed to charge a household from an average of £4,279 per year to £3,280 on April 1, reflecting a sharp drop in global energy costs.

But this will be offset by cuts in support under the Government’s Energy Price Guarantee which had capped bills at an average £2,500 a year. This is due to rise to £3,000 at the same time as the change in the price cap. The energy bill support scheme, which provided another £400 is also due to end.