More than a quarter of people in Great Britain (29 per cent) are in debt to their energy companies, according to research commissioned by the Warm This Winter campaign and published by the End Fuel Poverty Coalition, an independent organisation that is part of the campaign1. The findings were released as the Chancellor's extension of the energy price cap took effect on 1 April 2023, setting the level of support with energy bills available from that date1.
Among prepayment meter customers, 18 per cent owe upwards of £250, with many owing more than £5001. Combined household energy debt will top £2.7bn by the end of June this year, the coalition said1.
The survey also recorded the effect of that debt on households. Close to a third of respondents in energy debt (30 per cent) reported anxiety as a result, 12 per cent said worrying about it is making them ill, and 22 per cent of vulnerable householders reported sleepless nights1. A third of people in energy debt (33 per cent) said they were sacrificing essentials, including not keeping up with household maintenance (18 per cent) and skipping meals (17 per cent), while 12 per cent said they would take on other forms of debt, such as a credit card or overdraft, to pay energy bills1. More than half (54 per cent) were worried they would not save enough over the summer to clear the debt, rising to 70 per cent of lower income households1.
On the support available from 1 April, 56 per cent of Britons said they were unhappy or very unhappy with its level1. A spokesperson for the End Fuel Poverty Coalition said:
Heidi Chow, executive director of Debt Justice, said energy debt is having a devastating effect on millions of households who can no longer afford to properly heat their homes, cook meals, or operate medical equipment, and that by ignoring the problem the government is needlessly prolonging the anxiety1. Tessa Khan, executive director of Uplift, said household bills are still double what they were two years ago and that high energy costs are making food and other goods more expensive1.
Why it matters for households
The figures describe a debt position rather than a tariff position. The level of support available from 1 April is set against arrears that, on the coalition's estimate, reach £2.7bn across households by the end of June1. For a household carrying debt, the practical constraint is the gap between what the energy price cap allows a supplier to charge and what the household can pay, and the survey indicates that gap is being closed by cutting maintenance and meals rather than by reducing consumption alone1. Prepayment customers, 18 per cent of whom owe upwards of £250, face the additional feature that credit must be bought before energy is used1. The coalition states that seven million UK households were in fuel poverty this winter and that bills remain double their level of two years ago1. How far the support level from 1 April changes those positions has not been reported.
What happens next
A mass lobby of politicians is planned for Saturday 1 April 2023, with more than 70 events arranged nationwide, including demonstrations and meetings with local MPs1. In March, campaigners from Warm This Winter delivered a 400,000-strong petition to Number 10 Downing Street calling for government action on the energy system1. The coalition has called for targeted debt relief to wipe out part or all of the energy debt, rather than passing bad debt on to other bill payers1. No government response to those calls is reported.
Sources1 cited
- Rising energy debt creates mental health crisis for households - End Fuel Poverty Coalition, endfuelpoverty.org.uk