As the typical annual dual-fuel bill rises to £1,755, charities warn that a record £4.4bn is now owed to energy suppliers. The quarterly cap increase, effective Wednesday, comes despite falling wholesale gas prices, as costs for energy policies and network upgrades are passed on to consumers.
While bills are lower than the peak of the energy crisis, they remain nearly £600 higher than before Russia’s invasion of Ukraine in 2022. Ofgem data shows household debt has surged by over £750m in the past year, with a record proportion of Britons unable to pay by direct debit.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said the figures should “ring alarm bells” in the Treasury, calling the debt growth “unsustainable”. The coalition warns of thousands of winter deaths linked to cold homes, and increased pressure on the NHS from poorly heated housing.
Some households are tampering with meters to steal energy, while others wear gloves indoors and limit heating to one room. Lindsey, 62, from Cheshire, said she curls up on her sofa to stay warm, fearing the cost of heating. “It’s quite lonely and I think that’s no good for my mental health,” she added.
Ofgem has added an extra £50 to the price cap to help suppliers cover unpaid debts, arguing it is cheaper than bailing out failed companies. Chris Norbury, CEO of E.ON, identified three types of indebted customers: those in poverty, those new to struggling, and a growing cohort who can pay but won’t.
