Clarion boss criticises increase to energy price cap

The chief executive of Britain’s biggest social landlord has criticised the energy regulator’s decision to increase its energy price cap.

On Wednesday, Ofgem announced its price cap would increase by 4% on 1 October, with higher wholesale gas prices due to the Iran war driving it to its highest level for three years.

It means a household using a typical amount of gas and electricity will pay £60 a year more.

Responding to the announcement, Clare Miller, chief executive at Clarion Housing Group, said it was “disheartening” to see another increase to the cap.

She said the change would put “a further squeeze on the finances of families up and down the country” and that for her residents “the stress that this brings will be particularly acute”.

Miller, who recently announced her intention to step down from her role, pointed to early data from Clarion’s annual survey showing that 58% of residents have only enough money for essentials or run out of money before the end of the month, with 40% reporting difficulty paying energy bills. 

“More strain for these families will mean more trade-offs that nobody should have to make,” she said. 

“Last year 16% of residents went without food because they couldn’t afford to eat, and 14% used a foodbank.”

Miller said the housing association was “doing what we can” to support residents, last year giving 5,423 households one-to-one money guidance and energy advice, and giving grants or vouchers to 33,039 households.

She encouraged struggling residents to contact Clarion to access support.