Home Business News More than 6 million households are struggling to pay their energy bills

More than 6 million households are struggling to pay their energy bills

1st Jul 24 4:17 pm

The National Debtline has warned that more than 6 million people are struggling to pay their energy bills and Ofgem has reported that £3.1 billion is the latest debt figures.

This comes despite prices have fallen and the lower energy price cap has helped some, but the National Debtline is calling for “urgent action” to help those who are in debt.

Steve Vaid, chief executive of the Money Advice Trust, the charity which runs the National Debtline, said, “The fall in the price cap will alleviate some of the pressure many households are under, but our findings show that many more will continue to struggle as energy bills remain high.

“As millions of people worry about keeping up with their energy payments, arrears levels have continued to increase and many have been left with unaffordable debts as a result.

“What we need to see from the next Government is urgent action through a Help to Repay scheme to help people trapped in energy debt access a safe route out.

“Anyone struggling with their energy bills, or worried about their finances, should contact National Debtline as soon as possible – our advisers are here to help.”

Ofgem’s director general of markets, Tim Jarvis, told the Energy Security and Net Zero Committee in May that customer bad debt has risen by more than 50% over the last year.

Jarvis said, “If you look at bad debt over the last 12 months, it’s increased by over 50%. So it’s gone from £2 billion to over £3 billion.

“We’ve seen an increase both in the numbers of people in debt but also a much bigger increase in the total amount of debt, suggesting those people are getting further and further into debt.”

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