Citizens Advice says it’s helping record numbers of people with energy debts before winter has even begun – and the size of the debts people face is rising. New research from the charity shows almost eight million people had to borrow money to pay their energy bills in the first half of 2023, a number it forecasts will rise over the coming months.
The charity is warning that its data suggests that millions are facing a winter as bad, or even worse, than last winter, unless the government acts on energy bills. Its research shows disabled people, single parents and low-income households earning less than £29k will be the hardest hit this winter.
Despite an estimated fall in the energy price cap, the average household can actually expect to pay slightly more in the coming winter than they did between January and March 2023 – if current forecasts hold.
Starting the winter in debt means there is a real risk of falling even further behind on energy. People have to pay back arrears on top of the costs of increasing energy use in the colder months, and find the funds to cover other essential bills.
Citizens Advice predicts that by the end of this year it will have seen 26% more people in need of help with energy debt compared to 2022. And the charity says the numbers seeking help for energy debt has more than doubled in four years.
Not only has the number of people in debt increased, but the value of the energy debt has also grown considerably. Ofgem recently estimated the total energy debt owed by consumers to be £2.25 billion. This trend is reflected in Citizens Advice data which shows the average amount of energy debt owed by the people it helps is now around £1,711, a third higher than it was in 2019.
The charity’s analysis shows disabled people and families with young children, particularly single parents, are more likely to have very high levels of energy debt, and high monthly shortfalls too.
The charity also found higher levels of anxiety among these groups compared to the general population. 55% of disabled people say they’re very or fairly worried about affording their energy bills in the next six months. And 77% of single parents said they are very or fairly worried about paying for energy as we head towards December.
Citizens Advice says even households with an annual income of £29k are being stretched to meet increases in prices and will face choices such as choosing between heating or eating this winter.
Dame Clare Moriarty, Chief Executive of Citizens Advice, said:
“What we saw last winter must never be repeated. Struggling households unable to pay their energy bills, people unable to top up their prepayment meter, and record numbers coming to us for crisis support.
“With increasing numbers of peple we help facing a negative budget, where they simply don’t have enough to cover their essential bills, there is a real risk this winter will be worse.
“The government should look seriously at stepping in with additional bill support to help people through the winter.”
