Energy price hike may put families in debt

More families and vulnerable groups in Britain may be hit with debt after another energy company announced increases in bills.

Following EDF`s statement that customers would see increases in bills and Scottish Power withdrawing its capped tariff, British Gas` announcement of price hikes has prompted concern from charities and action groups.

The Child Poverty Action Group said the poorest families would be hit hardest.

Kate Green, chief executive, said: "At a time when the cost of living is rising this is bad news for families and will cause further fuel poverty."

The National Pensioners Convention also commented on the matter, telling LDP Business thousands of older people will face financial problems.

British Gas customers will see a 35 per cent increase in their gas bills and a 25 per cent rise in dual fuel costs. Prepayment dual fuel customers have been hit with a 21 per cent rise.

Consumers concerned about debt problems may wish to seek professional advice.