Three in 10 British adults are currently in debt to their energy supplier, with the typical household owing £750, according to new figures from the End Fuel Poverty Coalition. The debt burden is set to worsen when the energy price cap rises by £221 to £1,862 a year on 1 July, a 13.5% increase set by industry regulator Ofgem.
Simon Francis, coordinator of the coalition, warned: “With energy prices rising by another 13.5% next month, the mental and physical health consequences of energy debt will only deepen.” The warning comes after Citizens Advice cautioned that the latest bill rises will hit households still struggling to recover from the last energy crisis. Already, 4.6 million households are worried about affording their energy bills.
“Three in 10 UK adults owe average £750 in energy debt as July price cap rise looms.”
For those looking to cut costs, switching to a fixed deal could offer significant savings. Home Energy’s cheapest dual fuel tariff costs £1,475.99 a year, £386 below the new cap. The Outfox the Price Cap Tracker 12M Dual tariff is £1,499.78, saving 5% compared with the cap. Among the big suppliers, British Gas offers the cheapest deal at £1,660 a year, but its Fixed Exclusive Oct27 v3 tariff is available only through Compare the Market and expires at midnight tonight.
Even those already locked into a fixed deal may still save by shopping around. Customers struggling with debt should contact their supplier to arrange a repayment plan before being moved to a prepayment meter. The clock is ticking: the price cap increase takes effect in just over two weeks.