One million UK households behind on their energy bills

A new report has found that around 1 million households across the UK are behind on their energy bills in the wake of energy price increases over the past few years.

The Resolution Foundation thinktank has found that, since 2012, electricity and gas debts have risen to £1,600 and £1,400 respectively compared to an average of around £500 before.

Similarly, there are now more than a million customers in debt on their electricity bills compared to about 300,000 in 2012. The number of gas customers in debt has also tripled to about 900,000 from about 300,000 in 2012.

Given the increases in energy wholesale prices since 2021, this news isn’t necessarily surprising, but it does highlight the toll that the ongoing energy market crisis is taking on customers’ finances. With the energy price cap due to increase to £1,755 for an average use household on a standard variable tariff as energy usage rises during the winter months, bills are only likely to increase.

What can customers do about energy debt?

The report also highlights that the majority of the customers in energy debt don’t have a repayment plan in place. It’s vital that customers engage with their supplier as a first step to work out the best way forward. There may be hardship funds and grants available for the most vulnerable customers which could help.

There are also organisations which offer free advice and help, such as StepChange, National Energy Action and Citizens Advice.

If you’ve been in debt for less than 28 days and you’re on a standard variable tariff, it’s extremely likely that you can save by switching to a fixed deal. There are tariffs on offer which could save around £200 against the price cap both now and when it goes up in October, so it’s worth running an energy comparison to see what’s available. Click below to get started.