In the last three years alone, total energy debt and arrears in the UK have more than doubled to official estimates of nearly £4.5 billion. Analysis from trade association for the UK energy industry, Energy UK, actually shows that the true figure is around £5.5 billion.
The typical dual-fuel household now pays an extra £50 per year on their energy bill to cover debt related costs, while standard credit customers pay an astonishing £140.
We see this story play out with so many of our energy advice customers and our advisors work hard to ensure Londoners know their rights, how to best manage energy debt and how to apply for any benefits they may be eligible for.
But more needs to be done. Starting with raising awareness of this huge yet – due to stigma – often hidden issue.
If you haven’t already, check out this report from Energy UK – Energy debt: Everyone pays. We’ve summarised some of their key findings below.
The Warm Home Discount provides a £150 rebate, but after accounting for scheme costs, the net saving of £105 is far below the average fuel poverty gap of more than £400
An estimated 6.1 million UK households are currently in fuel poverty, up from 4.5 million in 2021
Approximately 2 million households face some form of energy indebtedness
The number of customers in arrears (without a repayment plan) has risen from 820,000 to over 1.1 million