An estimated 5.5 million UK adults are in energy bills debt, according to new research from the Money Advice Trust1. The figures, dated April 2023, show 2.1 million more people in energy arrears than in March 20221.
The research also found that millions were struggling to access support from their energy suppliers. An estimated 3.9 million people, or 7 percent, said they had not been able to access help for their bills after contacting their suppliers, while a further 3.2 million people, or 6 percent, reported not being able to get through to contact their supplier at all1. The findings are more than previous data from the Warm This Winter campaign suggested earlier in the year1.
In response, the End Fuel Poverty Coalition has joined with the Money Advice Trust, StepChange Debt Charity, Warm This Winter and other organisations to ask the Secretary of State for Energy Security and Net Zero to set up a "Help To Repay" repayment-matching scheme, which campaigners say would provide a safe route out of debt for struggling households1. Joanna Elson CBE, chief executive of the Money Advice Trust, which runs National Debtline and Business Debtline, said:
"Energy bills might finally be falling, but for millions of households, the effects of this cost of living crisis are already baked in. With more people falling behind on energy and other essential bills and millions facing unaffordable demands for repayment, we need urgent action to make sure everyone has access to a safe route out of debt."
A spokesperson for the End Fuel Poverty Coalition said energy debt is "surging to unprecedented levels" and that the majority of the new debt is caused by record high energy prices, adding that the Government should look at how the windfall tax could be used to help people rather than ending it early as planned1. Separate research by the University of Bristol found only 26% of households have not had to take measures to cut back on spending, with 35% not able to afford a healthy balanced diet at least once in the past month1.
Why it matters for households
Energy debt is distinct from a high bill: it is money already owed to a supplier, and it sits against the household rather than the meter. The figures here describe how many homes are carrying that position, and how many could not get through to the supplier that holds the debt. For a household's energy independence, arrears change the terms of the relationship with a supplier, and repayment demands arrive alongside the ongoing cost of the energy itself. The energy debt and arrears statistics page sets out the wider picture, and energy debt and repayment plans covers how repayment arrangements work. Help differs by nation: England, Scotland, Wales and Northern Ireland, which operates a separate market. Charity-run services such as National Debtline offer free advice1.
What happens next
The joint letter asking the Secretary of State for Energy Security and Net Zero to establish a Help To Repay repayment-matching scheme has been submitted, with full detail of the proposal published by the Money Advice Trust1. No decision on the scheme has been reported.
Sources1 cited
- Call for Help To Repay scheme as energy bills debt soars, endfuelpoverty.org.uk