Cost of living: Over five million Brits in energy bills debt, experts warn

Energy prices are predicted to fall next month but experts have warned that more than five million Brits are already in debt over their gas and electricity bills.

A survey for the Money Advice Trust, the charity that runs National Debtline and Business Debtline, suggests that an estimated 5.5 million UK adults are behind on their energy bills.

An estimated 3.2 million people have received demands from their energy supplier for repayments of arrears they cannot afford, the Money Advice Trust said.

The service said the findings confirm the “heavy toll” the cost of living crisis and soaring energy bills have taken on household finances, with 2.1 million more people in energy arrears in April than a year ago and millions struggling to get help from their suppliers.

Worryingly, some 7% – around 3.9 million people – of those polled said they were unable to access help with their bills after contacting their suppliers for support, while 6% reported being unable to get through to their firm.

As a result of the research, the Money Advice Trust, StepChange Debt Charity, National Energy Action, Scope and 10 other organisations have written to energy secretary Grant Shapps to call for a dedicated government “help to repay” scheme for energy arrears, to provide repayment matching and the option to write off debts for people dealing with unaffordable arrears.

The letter also calls for urgent reform of debt collection practices for energy arrears.

Watch: ‘Good news’ that energy bills are set to fall

Joanna Elson, chief executive of the Money Advice Trust, said: “Energy bills might finally be falling but for millions of households the effects of this cost of living crisis are already baked in.

“With more people falling behind on energy and other essential bills and millions facing unaffordable demands for repayment, we need urgent action to make sure everyone has access to a safe route out of debt.

“The government has already provided substantial support to help with the cost of living but no one should underestimate the scale of this continued crisis.”

Simon Francis, co-ordinator of the End Fuel Poverty Coalition, called on the government to prolong the windfall tax on energy firms to help reduce fuel poverty, adding: “Energy debt is surging to unprecedented levels and it’s clear that households are just unable to cope.”

A government spokesperson said: “We know this has been a difficult time for families, which is why the government has covered around half of the typical household’s energy bill over winter.

“We are providing additional support to the most vulnerable, with an extra £150 for disabled people and £900 for those on means-tested benefits.

“We welcome the recent reduction in the price cap and will continue to monitor energy prices and keep support schemes under review.”