The amount households owe to energy suppliers has smashed through another record, hitting £4.79bn – a 15% increase in just a year, according to regulator Ofgem.
The figures, covering January to March, show average arrears for those without a repayment plan have reached £1,876 for electricity and £1,623 for gas – more than double the debt of customers who have agreed a payment plan.
“Energy debt in England, Wales and Scotland hits record £4.79bn as bills set to rise in July.”
The debt mountain is growing even as millions brace for another price rise in July, driven by higher gas costs. But experts say help is available, even for those who think they have cut everything they can.
Suppliers may write off some debt, offer payment plans, or help with the cost of white goods – but only if customers tell them they are in trouble. Ofgem also warns that paying bills quarterly rather than by monthly direct debit adds about £140 a year. Yet some seven million households still use these so-called standard credit accounts.
Around 40% of billpayers – some 22 million people – are on fixed tariffs, which shield them from price cap changes for a year. Deals on the market are currently cheaper than the price cap, though if international prices fall sharply, those savings may vanish.
With a record-breaking heatwave gripping the UK, winter might seem far off. But experts urge households to use the summer to block draughts, bleed radiators, and change cooking habits. Even shorter showers – timed by a four-minute song – can make a small difference.
Millions of pounds in benefits go unclaimed each year. Pension credit, in particular, is underclaimed, yet it can unlock further financial support for older people. Grants for energy efficiency improvements may also be available through local councils; charities such as Citizens Advice can help people check eligibility.