Santander UK has proactively reached out to nearly 150,000 customers identified as most vulnerable to soaring energy costs, a direct consequence of the ongoing Iran war.
The high street lender found 146,000 people likely spending over 10 per cent of their monthly income to energy bills following July’s price cap increase.
These potentially struggling customers received communications via email and digital platforms, including the Santander mobile banking app, directing them to available assistance.
The bank is offering details on financial aid, supported by a dedicated team of approximately 400 financial and customer care specialists. These experts are equipped to provide personalised budgeting advice and more intensive support for those facing serious arrears.
This preventative action comes as the conflict in Iran continues to escalate energy prices, placing significant financial strain on households across the country.
Mark Weston, director of financial support at Santander UK, said: “We are committed to helping our customers through more challenging times and provide a range of options to support those facing financial difficulties.
“Our dedicated team of financial care specialists are on hand to offer tailored support to those that are worried about their finances or an upcoming payment.
“We understand that debt can be difficult to talk about, but remind customers that simply reaching out will not impact their credit file.”
To reduce cost-of-living pressures, new Prime Minister Andy Burnham this week announced a cut to VAT on electricity bills, which is expected to take off £45 from a typical home’s annual bill under Ofgem’s current price cap.
Unveiling the policy on his first full day in office, Mr Burnham said the tax cut would give families “breathing space” after years of pressure from rising living costs.
“Westminster has not been working for people for too long, with families struggling with the cost of living,” he said.
“That needs to change. I said I wanted to give people breathing space, and that’s what I’m announcing on my second day as prime minister. We’re taking immediate action to cut taxes on energy bills, put more money in people’s pockets and bring back hope.”
But as the PM’s tax cut comes into effect, the price cap is forecast by experts to rise by 2 per cent in October from £1,862 to £1,906 a year, largely driven by continuing instability in the Middle East.
The new price cap will place further pressure on household finances as families switch their heating back on in autumn.
