Ofgem announced on 12 October 2023 that energy debt had reached £2.6 billion, its highest ever level, according to National Energy Action1. The charity attributed the figure to a combination of the rise in wholesale energy prices, the energy crisis and wider cost of living pressures1. NEA chief executive Adam Scorer said the debt was concentrated in the poorest households and was growing quickly1.
"The enormous weight of household energy debt is crushing vulnerable households. Government cannot just look the other way and hope for the best. This is the highest level of energy debt we have seen, it is growing quickly and concentrated in the poorest households."
NEA said energy bills are now on average £800 per year higher than they were at the start of the energy crisis1. It called for additional targeted government support, a Help to Repay scheme and an enduring social tariff1. The charity, alongside over 140 other organisations, had recently called on the UK Government to provide further targeted support this winter and to consult on longer-term measures such as a social tariff; it said there had been no response2.
Separately, NEA warned on 17 October 2023 that vulnerable households should not miss out on the Warm Home Discount, a £150 rebate off energy bills, as applications opened on Monday 16 October for households who need to apply to their supplier or prove their eligibility2. It said changes to the scheme last year meant over 800,000 low-income vulnerable households missed out on the £150 rebate, with around 500,000 previously eligible people unable to access it directly off their bill and 300,000 missing out after being required to prove eligibility2.
| Warm Home Discount: reported figures | Value |
|---|---|
| Rebate per household | £1502 |
| Households that missed out last winter | Over 800,0002 |
| Previously eligible who could not access it directly | Around 500,0002 |
| Missed out after being asked to prove eligibility | 300,0002 |
| Increase in the rebate over ten years | £102 |
NEA said the need to apply to a supplier in Scotland, or to prove residence in a "higher energy cost home" in England and Wales, creates unnecessary complexity, and that there is no coverage in Northern Ireland2. It said an Energy Performance Certificate can cost over £100 when the rebate is worth £1502. Polling for NEA by YouGov found a third of British adults expect to struggle to afford heating this winter if the government does not offer financial help2.
Why it matters for households
Energy debt at a record £2.6 billion indicates that a growing number of homes are carrying unpaid balances into the winter, when consumption rises1. For a household, arrears change the relationship with the supplier: repayment plans, and the terms attached to them, become part of the bill alongside the unit rate. The energy debt and arrears statistics set out how the totals are compiled, and energy debt and repayment plans covers how plans work in practice.
The £150 Warm Home Discount is a one-off credit rather than a change to standing charges or unit rates, so it does not alter the underlying cost of a unit of gas or electricity2. The proposals for a social tariff, which NEA again pressed for, would restructure bills rather than provide a single payment; their status is tracked in a social tariff for energy. Support available in England is set out in help with energy bills and debt in England, and grants from one supplier's trust are covered in the British Gas Energy Trust.
What happens next
NEA said further reforms to the Warm Home Discount are very unlikely to be put in place in time to help people this winter2. It said bills are likely to rise again in January2. NEA had submitted its asks to the Chancellor ahead of the Autumn Statement1. No government response to the call for further targeted support and a social tariff consultation had been reported2.