The amount owed to energy suppliers by households in England, Wales and Scotland has hit a new record of £4.79bn – a 15% increase in just one year, regulator Ofgem has said.
The newly-published 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 debts of customers who have agreed a repayment scheme.
“Energy debt hits record £4.79bn as bills rise in July; suppliers offer help if customers ask.”
The debt mountain is growing just as energy prices are due to rise for millions of households in July, driven by higher gas costs. Experts say support is available, even for those who feel they have already cut everything they can.
Suppliers may write off some debt, offer payment plans, or help with the cost of white goods such as fridges and washing machines – “but only if you tell them you’re in trouble”, the BBC’s Kevin Peachey reports.
Around 22 million people – about 40% of billpayers – are on fixed tariffs, where the unit price stays the same for a year. Options on the market are currently cheaper than the price cap, but if international prices fall sharply, the savings may not be so clear-cut.
One expensive trap is paying by quarterly bill rather than monthly direct debit. Ofgem says this so-called standard credit option costs about £140 a year more, yet around seven million households still use it.
With a record-breaking heatwave gripping the country, experts say now is the perfect time to prepare for winter – checking draughts, changing cooking habits, and bleeding radiators. Even shortening shower times, using an egg timer or a four-minute song, can make a small difference.
Millions of pounds in benefits remain unclaimed. Pension credit, in particular, is underclaimed and can act as a gateway to other financial support. Grants for energy efficiency improvements may also be available through local council schemes, and charities such as Citizens Advice can help people find assistance.