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Nicole Goodwin

'People are frightened': North East foodbanks react to energy price cap hike

"We're going to lose a lot of people because they won't be able to cope in their own homes through the winter months."

Those are the words of a North East foodbank owner who claims people are risking their lives to cut back on their energy costs as the average household's yearly bill is set soar from £1,971 to £3,549 from October.

Ofgem today confirmed an 80.06% rise in the energy price cap which will come into effect for around 24 million households in England, Scotland and Wales on default energy tariffs on October 1. It will remain in place until December 31, when it will be adjusted again.

Read more: Your energy bills explained as new eye-watering price cap announced by Ofgem

The 4.5 million pre-payment meter customers, who are often the most vulnerable and already in fuel poverty, will see an even more punishing increase, with their average annual bill set to go up to £3,608. Today families and foodbanks told of the devastating impact the cap could have on already struggling households in the North East.

Angie Comerford, who runs Hebburn Helps community foodbank said: "Honest to God, what are people supposed to do? I'm hearing stories already of the preparations that people are making for the winter months and a lot of it is quite worrying.

Angie Comerford who runs Hebburn Helps community foodbank (Newcastle Chronicle)

"Some people are buying gas canisters to use around their house. One woman has bought herself a camping stove and she says it's going to save herself from using her gas oven to make her bairn an omelette and save her from boiling her kettle.

"But everyone doing that is then sitting with something dangerous in their house just to try and keep the prices down. What happens if something goes wrong and you've got explosions and fires because people are desperately trying to knock their bills down?"

Angie added: "For a lot of years people have chosen whether to heat their home or put food in their tummies and there's people skipping meals left, right, and centre so their kids can have food. We've had families doing that for a long time.

"But in the winter months, if you're on a smart meter, where the hell are you supposed to get the money to put into that meter? We're going to lose a lot of people because they won't be able to cope in their own homes through the winter months."

Speaking on BBC Radio 4's Today Programme, MoneySavingExpert founder Martin Lewis echoed Angie's concerns about the loss of life due to the soaring cost of living. He said the situation is a "genuine social and financial catastrophe that is putting lives at risk" and predicted a further 51% rise in January.

Mr Lewis said: "I've been accused of catastrophising over this situation. Well, the reason I have catastrophised is this is a catastrophe, plain and simple.

"If we do not get further government intervention on top of what was announced in May, lives will be lost this winter."

He added: "The prediction now in January is up another 51% on top of where we are now and that would take a typical bill and direct debit to £5,386 a year."

Durham City lorry driver Stewart Lauder said he is already trying to cut costs by limiting the use of lights, heating and hot water in his rented bungalow. The 41-year-old lives alone and said his bills have almost tripled recently, going from £50 a month to just under £150.

He wishes he could install insulation, switch to green energy or take other measures to reduce energy use himself, but as he lives in a one-bed rented property he'd be relying on his landlord.

Stewart said: "It's got to the point where I'm reluctant to switch on the lights, with the heating it's a case of not trying to use it at all. You come home after driving 200-300 miles and your clothes are stinking and you've got to do a wash, but the energy and water all cost so much.

"There's nothing left to cut - I'm having to time myself in the shower so I don't use too much energy. It's massively lowering my quality of life already."

Following the cap announcement Walker -based charity East End Women put out an urgent appeal for donations of good quality blankets, new hot water bottles, flasks, slipper socks, scarves, draught excluders and coats for distribution to those in need.

The charity operates a foodbank in the East End of Newcastle and is also desperately appealing for food as stocks are running low and demand for support is increasing.

Building Futures North East who are supporting local families by delivering parcels from the East End Women Foodbank (Newcastle Chronicle)

Dawn Emmerson, who works for East End Women, said the foodbank was distributing 10-15 food parcels a week to local families three months ago. However, this week that figure jumped to around 40 food parcels.

Dawn said: "People are frightened. They're worried about the increase in food and the energy increase that's going to happen in October. They're worried now, so when October comes what's going to happen?

"It's not just individuals who are on benefits who are struggling, it's everybody. We're seeing working people who are worried. It's going to have an impact on everybody."

She added: "We were just saying this morning that trying to keep up with the demand in food parcels being requested is going to be really tough because we have seen an increase in the last few weeks. We're envisaging that demand is going to go through the roof with the imminent price cap rises.

"We're also struggling with donations coming in and that's understandable because everybody is tightening their belt and making cut backs. It means foodbanks as a whole are seeing a decrease in donations."

East End Women's foodbank is currently appealing for donations of food, including dog and cat food, as shelves are becoming increasingly bare of all items. Anyone wishing to make a donation can contact the food bank via social media here or donate via their Just Giving page here .

Ofgem's chief executive Jonathan Brearley urged the incoming prime minister and new Cabinet "to provide an additional and urgent response to continued surging energy prices".

The regulator said the increase reflected the continued rise in global wholesale gas prices, which began to surge as the world unlocked from the Covid pandemic, and had been driven still higher to record levels by Russia slowly switching off gas supplies to Europe.

Mr Brearley said: "The Government support package is delivering help right now, but it’s clear the new prime minister will need to act further to tackle the impact of the price rises that are coming in October and next year.

"We are working with ministers, consumer groups and industry on a set of options for the incoming prime minister that will require urgent action. The response will need to match the scale of the crisis we have before us."

Chancellor Nadhim Zahawi said the increase in the energy price cap would cause "stress and anxiety" for people, but that the Government was working "flat out" to develop more options to support households.

"While Putin is driving up energy prices in revenge for our support of Ukraine's brave struggle for freedom, I am working flat out to develop options for further support," he said.

"This will mean the incoming prime minister can hit the ground running and deliver support to those who need it most, as soon as possible."

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