More than nine million UK households are heading into winter owing money to their energy supplier or holding no credit, according to a survey by Uswitch. Two in five households (40%) said they are more worried about paying for energy this winter than last year.
Direct debit arrangements are designed to let households build up credit during the summer to offset higher winter bills. However, only 55% of billpayers are currently in credit, down from almost two-thirds (64%) in 2022. Among those with credit, just three in ten (29%) have saved £300 or more, while the typical billpayer holds between £51 and £100.
Debt and supplier contact
Around 3.4 million households — nearly one in eight — are in debt to their supplier, owing an estimated £750 million in total, or an average of £220 each. Two-thirds of those in debt (65%) said their supplier has contacted them about the amount owed, but only about one in eight (12%) said they received help arranging a repayment plan.
Ofgem's energy price cap rose by 3.6% to £1,723 for a typical household on October 1, and forecasters predict a further rise of around 22% in January. Uswitch found 43% of billpayers plan to wear extra layers instead of turning on the heating, and one in twelve (8%) intend to spend less on food to cover energy costs.
Advice and calls for support
Ben Gallizzi, energy spokesman at Uswitch.com, said: “Credit is the cushion that turns a frightening winter bill into a manageable one, but for millions, building a summer buffer for the winter simply hasn’t happened.” He advised those in arrears to speak to their supplier early and ask for an affordable repayment plan, and noted that fixed deals are available well below the predicted January cap.
Citizens Advice has warned that another rise in energy bills would hit working families and disabled households particularly hard. The charity is calling on the Chancellor to commit to additional “crisis support” on top of the Warm Home Discount in next week’s Budget, and to expand help to people receiving child benefit and personal independence payment (Pip).
Dame Clare Moriarty, chief executive of Citizens Advice, said: “Our advisers are seeing disabled workers weighed down by massive energy debts, and parents who are working but still unable to cover the costs of basics for their family.” She urged the Government to provide immediate, expanded crisis support and to fully fund the Warm Homes Plan to upgrade inefficient homes, warning that failing to act could cause “immediate, avoidable hardship now and in future winters” for those least able to afford it.
