The amount owed to energy suppliers by households in England, Wales and Scotland has hit a new record high of £4.79bn. Regulator Ofgem said total debt and arrears had risen by 15% in a year, with the figures covering January to March. Average arrears for those without a repayment plan reached £1,876 for electricity and £1,623 for gas – more than double the amount for customers who have a repayment agreement. The record comes just before energy prices are set to rise for millions of households in July, driven by an increase in the cost of gas.
Experts say there are options to cut bills, even for people who feel they have made every possible saving. Suppliers may write off some debt, provide payment plans, or help with the cost of white goods such as fridges and washing machines – but only if customers tell them they are in trouble. Around 22 million people, about 40% of billpayers, have the certainty of fixed tariffs where the cost per unit does not change for the term, usually a year. Options on the market are cheaper than the price cap level, though if international events cause sharp price falls, savings might not be so clear-cut.
“UK energy debt reaches record £4.79bn as regulator warns of 15% rise in arrears before July price increase.”
Receiving a bill every quarter rather than paying by monthly direct debit is typically about £140 a year more expensive, says Ofgem. There are still about seven million of these standard credit accounts. Meanwhile, experts say the current heatwave is the perfect time to check home energy efficiency: block draughts, change cooking habits, bleed radiators, and shorten shower times using egg timers or four-minute songs to keep time.
Millions of pounds goes unclaimed in the benefits system. Pension credit, in particular, is underclaimed and can help older people financially while acting as a gateway to other benefits. Grants for energy efficiency improvements may also be available through schemes organised by local councils, with eligibility varying by income and location. Charities such as Citizens Advice can help people see if they can get assistance.