The government announced on 3 February 2022 that the energy price cap would rise by £693, alongside measures to support households with their bills. Citizens Advice responded the same day, saying the support package was "strange, complicated and untargeted"1.
The charity said the increase would affect at least 22 million households, nearly 80 per cent of the national market, who are on the price cap1. It said the rise meant "we'll all see our energy bills rocket in April"1.
Dame Clare Moriarty, Chief Executive of Citizens Advice, said:
"This is a strange, complicated and untargeted package of measures. It provides some relief for all households come April, but for people on low incomes who need it most there are far easier ways for the government to deliver support. If the government is serious about helping families facing the desperate choice between heating and eating it should use the benefits system."
She added that energy rebates are "a buy now pay later solution which only provide temporary relief later this year", and that linking financial assistance to Council Tax would result in "a complicated lottery" that does not target support at those who need it most1.
Citizens Advice said it was facing record demand for crisis support, with more people seeking its advice in January 2022 than at any point since the pandemic began, and its data at "red alert" levels1. Its advisers were helping record numbers with energy debt advice and referrals for crisis support such as food bank vouchers and one-off charitable grants1. Polling commissioned by the charity, based on a representative poll of 6,000 UK adults aged 18 and over conducted by ICM Unlimited between 7 and 25 January 2022, showed that huge numbers would be unable to afford April's rise1.
The announcement did not set out the detailed eligibility rules for the support measures, and the sources do not report the specific rates, thresholds or delivery timetable beyond the April increase and the reference to relief later in the year1.
Why it matters for households
The price cap sets a limit on the unit rates and standing charges a supplier can charge for default tariffs, not a cap on the total bill, so a household's costs depend on how much energy it uses. A £693 rise in the cap level therefore translates into higher bills for the 22 million households on capped tariffs, and the amount a home pays will vary with its consumption. For a household's energy independence, the practical effect is that more of the money spent on gas and electricity goes on the standing costs of supply rather than on energy the household controls, and the support described is temporary rather than a change to how bills are built. The charity's criticism centres on whether the support reaches the households least able to absorb the increase, which is the point at which help with energy bills and debt and Citizens Advice's own services become relevant.
What happens next
The price cap rise takes effect in April 20221. Citizens Advice said the rebate element would provide relief later in the year, without giving a date1. No further dates for the support measures are reported in the source.