Advice NI Calls On Struggling Households To Seek Advice Early

From 1 October, Ofgem’s energy price cap will come into effect in Great Britain. The price cap won’t impact Northern Ireland which instead has a ‘tariff review process’ where prices are overseen by a Utility Regulator.

 

Although costs in Northern Ireland have been lower than Great Britain in the last year, according to a recent Fuel Poverty Coalition report, an estimated 45 per cent of households in Northern Ireland are living in fuel poverty - with those on the lowest income and in the least efficient homes being hit hardest.

 

Sinead Campbell, Head of Money, Debt, and Quality at Advice NI, explains that this perpetuates energy debt. She says, “Record numbers of households and families across Northern Ireland will face energy related debt this winter. Going cold, hungry or having no hot water, is the stark reality for many people. Some may feel forced into building up arrears or borrowing money to keep up with payments. While the government energy guarantee was removed, energy prices are on average 2.5 times higher than pre-covid levels, we expect energy debt to remain an ongoing issue.”

 

National Energy Action (NEA) has also expressed grave concerns about the worsening situations faced by households, including higher direct debits without changes in usage, unaffordable debt repayment plans, and prepayment meters.

 

Jamie Miller, Policy Officer at NEA said, “Energy prices are significantly higher than they were in 2019. This means the average household expenditure on energy is over £1000 more per year than it was. When we surveyed Northern Ireland households to find out how they were coping with this added pressure, 80 per cent of respondents told us they were rationing their energy, and 1 in 10 people admitted that they have had to skip meals to cover their fuel costs. This means choosing between heating and eating is very much a reality for around 100,000 households in Northern Ireland.

 

Fuel poverty in Northern Ireland remains a significant problem and a leading cause of hardship amongst vulnerable and lower income households. There is a clear need for a strategic, cross-departmental, and cross-sectoral approach to tackle fuel poverty and it must be underpinned by a new Fuel Poverty Strategy.”

 

Sinead adds, “During April 2022 to March 2023, our service has seen an 85% increase in energy debt. This underlines the growing concern of the energy debt crisis, with households struggling to pay for most basic needs. Unfortunately, this means that many people will turn to credit to ease their financial pressures. This can lead to further financial difficulty, and we encourage anyone at risk of debt or struggling during the winter months, to seek our help as soon as possible. It is important people know they are not alone, as many are struggling right now and debt is nothing to be ashamed of.”

 

By providing practical advice and support, Advice NI aims to alleviate the financial strain on families and be the first stop in helping to find a solution. In the past twelve months, Advice NI and its members have dealt with over 4,100 cases of household personal debt, managing over £34.3 in more than 7,700 agreements.

 

Advice NI operates a Freephone helpline on 0800 915 4604 from 9:00am to 5:00pm Monday to Friday. Advice and toolkits are also available online at its Money Talks Hub. Visit www.adviceni.net/debt for more information.