A new survey has revealed that a third of UK adults are currently in debt to their energy firm or concerned about falling behind, just ahead of a 13% increase in the price cap scheduled for July. The figure rises to 45% among parents with a child under 18 and 35% of disabled individuals, according to the poll conducted for the End Fuel Poverty Coalition.
Among those in energy debt, the median amount owed to an energy supplier stands at £750. The survey also found that 13% of those in debt or worried about missing payments owe money to someone who makes them feel scared, a figure that rises to 24% among those already in arrears.
To cope with rising costs, 32% of those already in energy debt have tried to use less energy over the past 12 months by turning off the heating or taking shorter showers. Additionally, 25% kept their home colder or warmer than comfortable, 21% missed rent or mortgage payments, more than one in five skipped meals (21%), and 18% turned to a food bank for support.
The End Fuel Poverty Coalition reported that supplier support for struggling households has been mixed. While 15% of those in arrears were referred to a hardship fund and 15% were on a repayment plan, 13% reported having no contact from their supplier in the past 12 months. Fewer than one in five (18%) felt they were treated fairly by their supplier, and only 8% were referred to debt advice.
Call for Action
Simon Francis, co-ordinator of the End Fuel Poverty Coalition, said: “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 to their energy company or worried about falling behind, and yet the price shock profiteers are posting billions in profits.” He added that this is a “can’t pay crisis, not a won’t pay one,” noting that very few in debt are from high-earning households.
Janine Michael, chief executive of the Centre for Sustainable Energy, said: “We speak to people every day who are struggling to keep up with their energy bills – not because they won’t pay, but because they can’t. The long-awaited energy debt relief scheme must be brought forward urgently, and people in debt need access to proper debt advice, not just a letter from their supplier.” She emphasized that debt relief alone is a temporary fix, and the real solution lies in reducing energy use through investment in efficiency and phasing out gas.
Ned Hammond, deputy director of customer policy at Energy UK, noted that household energy debt has doubled to £5.5 billion in recent years and could reach £7 billion by the end of this year. He said: “Too many households genuinely can’t afford to cover their energy costs, but current regulations also make it all too easy for customers to fall into arrears, with limited routes to get out.” He called for a comprehensive debt strategy, starting with the swift launch of Ofgem’s Debt Relief Scheme.
The survey was conducted by Opinium among 2,000 UK adults between May 29 and June 1. It found that 9% were behind on payments to their energy supplier, and a further 22% (about 12 million) were worried about falling behind on their energy bills.
