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Household energy debt has hit an eight-year high ahead of winter, data shows.
families They are starting the winter owing £780 million to their energy suppliers, the highest debt level in eight years, a survey by Uswitch found.
According to the comparison site, around 3.5 million households owe money to their provider, up 46% from 2.4 million last year.
The current average household debt figure of £223 is 29% more than last year’s £173.
Across all households, the average bill payer’s credit last year was £128, but this year it has fallen to £98 – falling below £100 for the first time since the energy crisis began.
Households typically pay a fixed amount each month that exceeds their actual summer usage in order to build up credit to cover the more expensive winter months.
However, more than two million low-income households – and 10 million UK households overall – have no energy credit to cope with high winter bills.
Among the 55% of households who have a credit balance, this has fallen slightly from an average of £222 last autumn to £214 currently.
Latest figures from regulator ofgem It was revealed that customers are owed more than £4 billion by energy suppliers, an increase of more than £750 million on the previous year.
Ofgem’s debt figure is the total amount customers owe their suppliers for unpaid bills, while Uswitch is measuring the current balance of a household’s energy account.
One in six households (16%) earning less than £20,000 a year already owe money to their energy supplier before winter, with indebted households owing an average of £60.
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One in 10 households (12%) who are in debt to their supplier say they are unable to repay it, double the figure from last year (6%).
Another 9% are planning to switch to prepayment meter to pay off their loans.
Of those in debt, 34% say their supplier has not contacted them about the outstanding amount. However 57% of those contacted said they were offered help or advice.
Ofgem’s energy price range for a typical household in England increased by 2% from 1 October, scotland And walesJust like many people turn on their central heating in cold temperatures.
This means the average household paying for gas and electricity by direct debit has had its energy bill rise to £1,755 a year, up from £1,720 previously.
Many households reported planning “drastic” measures to reduce their energy bills, Uswitch said, with 40% saying they would wear extra layers at home so they could keep their heating down and a third saying they would turn down the thermostat.
Ben Gallizzi, energy spokesperson at uSwitch, said: “It is extremely worrying to see that household energy debt has reached an eight-year high, suggesting that many households may soon face bill shock when the direct debit levels are updated.
“Lower costs of living and the end of many government support schemes mean families are receiving less help than before, leaving many behind.
“Households use more energy during winter, so it is ideal for those paying via direct debit to have around two months of energy credit at this time of year.
“If your energy account is going into debt, or you’re behind on your bill payments, talk to your supplier as soon as possible.”
An Ofgem spokesperson said: “The current level of energy debt is unsustainable, and it is a challenge that requires action from everyone – regulators, Government And similar industries.
“It is important that we target support at those customers who need it most, while also ensuring that those who are able to pay are supported to do so.
“If a customer is struggling they should talk to their supplier about options that can help them get back on track.
“These may include tailored repayment plans, which can help families regain control and avoid falling further behind.
“We are also moving forward on plans to launch a debt relief scheme that can help struggling households get back on track and repair some of the debt they have built up as a result of the crisis.”
A government spokesperson said: “We are making reforms that put consumers first, providing stronger protections, including automatic compensation when energy companies abuse bill payers.
“We’re working with Ofgem to take debt out of the energy system. To help people with the cost of living, this winter we’re extending the £150 Warm Home Discount to more than six million homes.”
Opinium surveyed 2,000 UK energy bill payers between 3-8 October.