The UK's energy debt has hit a record high of £4.79 billion, highlighting the growing burden of living costs on households nationwide. According to Ofgem, this represents a 15% increase in arrears across England, Wales, and Scotland over the past year, with the majority of these debts accumulated between January and March. The data reveals stark disparities in repayment arrangements, with customers without a plan owing significantly more – £1,876 on average for electricity and £1,623 for gas – compared to those who have established manageable payment plans.
With energy prices poised to rise again in July, driven primarily by an increase in gas costs, the pressure is expected to intensify. Despite this challenging outlook, households are advised to explore various options to manage their bills and existing debt. Suppliers may offer assistance such as writing off a portion of debt or setting up manageable payment plans, but only if customers proactively communicate their financial difficulties.
One strategy worth considering is switching to a fixed energy tariff. Approximately 22 million people, around 40% of billpayers, currently benefit from the stability of fixed deals, where the unit cost of energy remains constant for the contract term, typically a year. While current fixed tariffs can be cheaper than the price cap, consumers should remain aware that a sharp fall in wholesale energy prices could make these deals less advantageous.
Paying bills by monthly direct debit is estimated to save around £140 annually compared to quarterly standard credit accounts, which are still used by about seven million households. Furthermore, improving energy efficiency within the home remains crucial for reducing consumption and costs. Simple measures such as addressing draughts, adjusting cooking habits, bleeding radiators, and taking shorter showers can make a significant difference.
Many households may also be eligible for grants and government support schemes. Millions of pounds in benefits go unclaimed each year, including Pension Credit, which can act as a gateway to other financial assistance. Local councils run schemes offering grants for energy efficiency improvements, with eligibility often depending on income and location. Organisations like MoneySavingExpert provide comprehensive guides on available support and energy-saving tips.