Families facing debt crisis - 6 steps to reduce household bills

Households face cost of living challenges.

The energy price cap dropped 7% this month, saving households £117 annually. However, thousands may still struggle to stay afloat if costs rise, with some owing up to £15,000 in debt.

Many households live on a knife-edge. If energy prices rise, tens of thousands may have to choose between heating, food, or bills.

Without support, families risk crisis with long-lasting consequences. Those worried about bills or debt should seek help as soon as possible.

There are six ways to lower energy bills and avoid crisis. Families should act now, not when the situation becomes dire.

Thousands of households are already in arrears.

Energy suppliers must work with struggling customers to avoid arrears. People should contact their supplier early for support.

Customers may get repayment plans or temporary payment reductions. Suppliers can also provide emergency credit or signpost other support.

Suppliers can help with grants or hardship funds.

People should not wait until debts pile up. Households in arrears can get free debt advice to stop arrears from spiralling.

Setting a fixed direct debit gives certainty over monthly outgoings, making budgeting easier.

Many people may be entitled to government support like Warm Home Discounts or local grants, but may not realise they qualify.

Money Wellness helps people find extra support, with customers receiving £3,000 on average. Online tools can highlight eligibility.

Local authorities offer crisis support systems, including cash or vouchers for prepayment meters. This varies by council.

The energy price cap dropped 7% this April.

Small changes can add up to energy bill savings, such as switching off unused appliances or using LED bulbs.

Some energy companies provide free energy-saving measures like electric blankets or insulation. Households should ask their supplier what is available.

Households should review their income and outgoings to cut back on non-essentials and free up money for necessities.

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