Ofgem is set to announce the new energy price cap on November 22 and the latest forecast from Cornwall Insight is that it will only go up by £19 over the next 12 months, around £1.58 per month. The energy consultancy firm said it expects the price cap to increase from the current £1,717 to £1,736, a rise of one per cent.
However, a new report by clean energy-tech company, Aira reveals that 65 per cent of UK homeowners are significantly impacted by rising energy costs. The risk of ‘energy poverty’ – when a household has to reduce its energy consumption to a degree that it has a negative impact on an individual’s health and wellbeing – has been quietly growing throughout the cost of living crisis, with over a third (34%) of UK homeowners having to dip into savings to pay their energy bills.
The physical and emotional impact is being felt across the nation, with 75 per cent of people in Yorkshire and The Humber having restricted their use of heating to reduce energy costs and 13 per cent of Londoners experiencing a lack of sleep.
Aira’s latest report, The Era of the Eco-curious: can I live more sustainably and spend less? reveals that people are already taking small steps to live more sustainably, with 37 per cent of Brits switching to eco-mode on their washing machine, 29 per cent buying second-hand clothes and 25 per cent using appliances out of peak periods.
While 57 per cent of people still associate heat pumps with high upfront costs, these small steps highlight the desire to live more sustainably and create new hope for heat pump adoption.
Industry experts argue that despite the challenges of the cost of living crisis, the combination of increasing energy costs and lower incomes is encouraging a broader reevaluation of energy usage, driving a new era of eco-curious consumers.
The data, however, shows that there’s room to increase consideration and uptake as 54 per cent of people say they would switch to a heat pump if they perceived them as more affordable, signalling an opportunity for both governments and businesses to help accelerate adoption with education and increase accessibility with financial incentives.
Carolyn Snell, Professor of Social Policy at the University of York, said: “There can be a perception that heat pumps are more expensive to run, they’re difficult, and they’re not going to make things as warm as you want them. There’s a real lack of good information around it, and a lack of trusted information as well. Historically, energy is an area where there’s a lot of mistrust – it goes back to the 1990s.”
By making the simple shift to cleaner, greener heat pumps, people can save £560 on their annual energy bills and disruptor brands, like Aira, are already working to remove barriers to adoption, with monthly payment plans and extended warranty for peace of mind.
Pamela Brown, Aira’s Consumer Expert, said: “Our report shows that energy costs are now a critical challenge for households and are creating anxiety as winter approaches. However, a generation of eco-curious individuals are slowly realising that their carbon footprint – and their energy bills – can be drastically reduced by adopting clean energy-tech.
“At Aira we increase accessibility to these solutions with monthly payment plans and offer complete peace of mind with a 15-year guarantee, enabling people to live sustainably without spending more.”
Help with money worries
Anyone worried about heating their home this winter should seek advice from charities and organisations that can navigate the often complex world of accessing fuel funding, especially those on a prepayment meter.
You can get help with energy bills from:
- Citizens Advice Scotland
- Advice Direct Scotland, which also operate Energy Advice Scotland
- Energy Action Scotland
- National Energy Action
- Turn2us
If you are struggling with household finances contact your local council who may be able to provide crucial financial help. The Scottish Government has received £44 million from Westminster to help people in financial difficulty across Scotland.