ENERGY bills are to be cut but still remain 'unaffordable for millions', a leading charity advice service has warned. 

Today, Ofgem lowered its energy price cap to £2,074, saving electricity and gas users £426 from July 1, meaning energy bills will drop on average by 17 per cent. 

The lower cap will replace the Government’s Energy Price Guarantee (EPG), which currently limits the typical household energy bill to around £2,500.

At its peak, Ofgem's price cap rose to £4,279 during the energy crisis. 

Citizens Advice for Carlisle and Eden said the reduction provides some 'desperately needed respite' but will still leave millions struggling and have called for further government support. 

Andy Auld, CEO of Citizens Advice Carlisle & Eden (CACE) said: "The fall in the price cap provides some desperately needed respite for households but energy bills will still be nearly double what they were just 18 months ago.

"That’s unaffordable for millions of households," he said. 

 

Nationally, although figures proportionately match local Citizens Advice services, a record number of people came to the charity with energy debt in the first four months of 2023 (32,400) - a 112 per cent increase on the same period in 2020.

This year alone, the charity has helped 94,000 people with food bank referrals and access to emergency charitable grants -  a 178 per cent increase on the same period in 2020. 

"For many, life is getting worse, not better. Year on year we're breaking records for the number of people struggling with energy debt.

"It’s clear more government support will be needed in the future for struggling households," Mr Auld said. 

Martin Lewis, founder of MoneySavingExpert, said: “This will be a relief for many, yet most will still be paying more for their energy than during the winter.

 

“This is because, apart from for those with high use, the drop in the rates doesn’t make up for the £66 per month state support people got until April – and most are on monthly direct debit, which means they pay the same in summer as winter.

“Overall, this still leaves people paying double or more what they did before the energy crisis hit in October 2021."