Matthew Cole, CEO of Fuel Bank Foundation:
“While the price cap is increasing, it’s not increasing by as much as it would’ve done thanks to the Government’s decision to remove VAT from bills for six months starting in October. However, the price cap also increased in July, so the compounded effect of back-to-back price cap increases will become very apparent, especially considering energy consumption drops over Summer, so most households wouldn’t have felt the immediate impact of the July increase.
“Worse still, if geopolitical circumstances, particularly those in the Middle East, carry on as they have been this year, then the likelihood is that there will be another price cap increase from January, meaning there will have been three increases on the bounce.
“Additionally, there’s an important group of households that aren’t protected by the price cap, and that’s people on heating oil. Prices for heating oil have increased by about 50% over the last half a year, and this is resulting in people filling up their tanks less than they normally would. As we head towards the colder months, it is absolutely crucial that households on heating oil are well stocked to avoid any potential issues during Winter, especially as many of these households are in very rural locations and can be difficult to reach in bad weather.
“This will all be a huge cause of concern for many people, and it is for us too. Those most in need will need targeted support to cut energy costs, and this should be a top priority for the Government as we head towards the colder months, even if they do seem a way off right now.”
