UK households face energy debt ahead of winter

A survey by Uswitch indicates that more than nine million homes in the UK are entering the winter season either in debt to energy suppliers or without credit. Approximately 3.4 million households are currently in debt, owing an estimated £750 million in total, with an average debt of £220 per household.

Data shows that only 55% of billpayers are in credit this year, a decrease from 64% in 2022. While 65% of those in debt report being contacted by suppliers regarding their arrears, only 12% say they have been assisted in arranging repayment plans.

Concerns regarding energy costs are rising, with 40% of respondents reporting more anxiety about paying bills this winter compared to last year. This follows an Ofgem price cap increase of 3.6% on October 1, with forecasters predicting a potential 22% rise in January. In response to costs, 43% of surveyed households plan to wear extra clothing instead of turning on heating, and 8% intend to reduce food spending to cover energy expenses.