Almost half of families with kids set to go into debt with new energy price cap

New research reveals the hike in energy bills is affecting double the amount of families with children, compared to those without

Big Zero Report 2022

The energy price cap increase of £139 this month is set to push millions of families into debt with their supplier, new research suggests.

It reveals that 43% of families with children at home believe that they will go into debt with their energy provider if bills hike. This is more than double the number of families without children going into debt.

The study claims that a rise in energy prices of just £76 would push households with children into debt but Ofgem’s price cap level is set to rise by £139 – with results being even more crippling.

Serious financial difficulties could occur to families on a Standard Variable Tariff or a prepayment meter.

In the last year, 16% of families with children have reported being in arrears to their energy provider, with 32% not currently in debt but fearing the cap will push them back in.

The upcoming cold season is now more of a worry for many families with the hike in prices – 22% said they already struggled to pay their bills in the last week.

The research was conducted by Compare the Market.

Ursula Gibbs, Director, commented: “People facing financial difficulty should speak to their supplier to see what support is available, and can also find out if they are eligible for the government’s Warm Homes Discount scheme.

“By shopping around online and switching provider regularly, you could save on average £267 on motor insurance and £110 on home insurance, which could help offset the increasing energy bills from the price cap.”

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