New figures reveal that one in three UK adults is currently in debt to their energy provider or anxious about falling behind, ahead of a 13% rise in the price cap from July. Among those struggling, the median amount owed to a supplier stands at £750, according to a survey conducted for the End Fuel Poverty Coalition.
Demographics of Debt
The survey highlights that 45% of parents with a child under 18 and 35% of disabled people are affected. Additionally, 13% of those in debt or concerned about missing payments owe money to someone who makes them feel scared, rising to 24% among those already in arrears.
Coping Mechanisms
To manage costs, 32% of those in energy debt have cut back on usage by switching off heating or taking shorter showers. Meanwhile, 25% keep their home at an uncomfortable temperature, 21% have missed rent or mortgage payments, 21% have skipped meals, and 18% have turned to food banks.
Supplier Support Criticised
The End Fuel Poverty Coalition found supplier support to be mixed. While 15% of those in arrears were referred to hardship funds and 15% were on repayment plans, 13% reported no contact from their supplier in the past year. Only 18% felt treated fairly, and just 8% were directed to debt advice.
Simon Francis, co-ordinator of the coalition, stated: "These figures lay bare the true cost of years of failure to fix energy debt caused by the sharp increases in bills. Millions of people are in debt or worried about falling behind, yet profiteers post billions in profits." He emphasised that this is a can't pay crisis, not a won't pay one, with ordinary people resorting to skipping meals and risky borrowing.
Janine Michael, chief executive of the Centre for Sustainable Energy, called for an urgent energy debt relief scheme and proper debt advice. She added: "Debt relief alone is a sticking plaster. The real fix is reducing energy use through investment in efficiency and phasing out gas."
Ned Hammond from Energy UK noted that household energy debt has doubled to £5.5 billion and could reach £7 billion by year-end. He urged a comprehensive debt strategy, starting with Ofgem's Debt Relief Scheme.
The survey of 2,000 UK adults by Opinium (May 29 to June 1) found 9% already behind on payments and 22% (roughly 12 million) concerned about falling into arrears.
