Energy bills: Over 6.4 million Brits in arrears

Over 6.4 million adults in the UK are now behind on their energy bills, a rise of 824,000 since April, according to new research.

A quarter (24%) of those with energy arrears are currently unable to repay, while more than a fifth (21%) said their supplier has not accepted an affordable offer of repayment, according to a survey for National Debtline, run by the Money Advice Trust charity.

Recent figures from industry regulator Ofgem showed consumer energy debts had reached a record £2.6bn.

The research also revealed the difficulties those in energy arrears face, with 18% saying they are unable to get through to their supplier when they try to contact them to discuss the debt, and one in four (24%) regularly losing sleep because of worry over energy debts.

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“High energy costs have left millions trapped in energy debt — and these households urgently need support this winter,” David Cheadle, acting chief executive of the Money Advice Trust, said.

“The government now has only a limited window of opportunity to act, which is why we are calling on the chancellor to use the Autumn Statement to step in with the help people need.”

Charities have warned that recent proposals by Ofgem to increase the energy price cap by £17 per household to stop suppliers from going bust due to soaring energy debts will only compound the problems.

Free debt advice service Money Advice Trust is leading a coalition of 13 charities calling on chancellor Jeremy Hunt to launch a dedicated government “help to repay” scheme for energy arrears, to provide repayment matching and the option to write off debts for people dealing with unaffordable arrears.

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“Failure to provide support to reduce energy bills and energy debt would be catastrophic, leaving millions of households unable to stay warm and healthy this winter,” Matt Copeland, head of policy and public affairs at National Energy Action, said.

“A ‘help to repay’ scheme would accelerate debt payments, ease the burden on household budgets, and help create a more sustainable energy market.”

Watch: Energy bills may rise by £17 a year to prevent suppliers going bust

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