Energy debt soars ahead of winter price hike

Households owe billions to energy companies – and that’s even before bills skyrocket this winter, research finds.

Figures by Energy UK show that the total level of energy debt across the UK has reached at least £3.2bn.

There have been concerns over the government’s decision to scrap winter fuel allowance for pensioners who don’t get pension credit.

On top of this, the energy price cap – which limits how much energy firms can charge customers for each unit of gas or electricity and standing charges – is set to rise by 10% in October.

Energy companies met government ministers in Downing Street on 28 August to discuss how to help people struggling to pay their bills this winter.

Afterwards, energy minister Miatta Fahnbulleh told reporters that a framework had been agreed. This’ll include giving debt advice to struggling households, as well as offering “continued financial support for our most vulnerable”.

But the government currently has no plans for extra funding or support schemes to help those in need.

Get help with energy costs

Talk to your energy supplier

If you can’t pay your energy bills, contact your energy supplier to find out what kind of help they offer. Ask them for more time to pay what you owe, for a payment break or reduction, or for access to any hardship funds.

Your supplier is legally required to work with you to agree on a payment plan you can afford.

Household support fund

People severely affected by the cost-of-living crisis may be entitled to help from the household support fund (HSF).

This government-funded scheme offers financial help, including help with utility bills, to vulnerable households through local councils. The fund is due to end on 30 September, but the government is looking at extending it.

Each council offers different types of support, so it’s best to check with yours to see what help you could get. To apply, contact your local council or fill out an application on their website.

Find out if you’re eligible for support in our HSF guide.

Check your benefits entitlement

You can check you’re getting all the benefits you’re entitled to on our website or you can give us a ring.

Is your supplier pressuring you to move to prepayment?

Those on prepayment meters (PPM) tend to be under more financial pressure. Unfortunately, this means the summer’s price cap may not make a big difference for those households.

Energy companies often push people struggling with their bills to move to a PPM, or pay-as-you-go meter.

But research shows that those on PPMs have higher levels of emotional distress and are more likely to borrow from illegal moneylenders.

Find out what you can do if your suppliers is trying to push a PPM on you.

Do you need money advice?

If you’re struggling to keep up with your bills, we can help.

We give free and impartial advice, and can put together a budget to help you take control of your money. 

If you’re in arrears, we can advise you on debt solutions online or you can give us a ring. Some solutions are free, others have a fee.