An estimated 5.5m UK adults are behind on their energy bills, according to new research from the Money Advice Trust.
The charity’s Under Pressure research – based on an Opinium survey of 2,000 UK adults and a comparison of data from previous polling carried out throughout 2022 – shows that 2.1 million more people are in energy arrears in April 2023 than in March last year.
In the wake of the research, the Money Advice Trust, StepChange Debt Charity, National Energy Action, Scope and ten other organisations have written to the Secretary of State for Energy Security and Net Zero calling for a ‘Help To Repay’ repayment-matching scheme to provide a safe route out of debt for struggling households.
The letter states:
Many people are now trapped in energy debt. Some will be able to repay these arrears through affordable repayment plans. However, for people who have little or no spare income, repayment will be difficult or take a very long time. This has a significant negative impact on individual vulnerable households.
The charity’s findings indicate strong public backing for additional support to help households who are struggling with high costs – three quarters of UK adults (73%) think additional support should be given to people dealing with energy arrears and the same proportion (74%) think people should be given more time to repay government debts in a way that is affordable.
To support the recovery of the hardest hit households, the Monday Advice Trust is joining other charities in calling for:
- A dedicated government ‘Help To Repay’ scheme for energy arrears, to provide repayment matching and the option to write off energy debts for people dealing with unaffordable arrears.
- Urgent reform of government debt collection practices to ensure safe routes out of debt, with affordable and fair repayment options available to all.
Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said:
Energy bills might finally be falling – but for millions of households, the effects of this cost of living crisis are already baked in. With more people falling behind on energy and other essential bills and millions facing unaffordable demands for repayment, we need urgent action to make sure everyone has access to a safe route out of debt.
The government has already provided substantial support to help with the cost of living – but no-one should underestimate the scale of this continued crisis.
The Help To Repay payment-matching scheme we are proposing will help those who otherwise will simply not be able to dig themselves out of the energy arrears that this crisis has created. And for those most in need, the government should introduce an Essentials Guarantee to link the rate of Universal Credit to cover the cost of essential goods like food and energy.
Free, expert advice is available from charity-run services like National Debtline – and it’s never too early, or too late, to seek advice if you are struggling to cope.
The research and production of the Money Advice Trust’s new report, Under pressure: Tracking the impact of the high cost of living on UK households, was conducted with support from JPMorgan Chase.
