A recent survey has laid bare the severity of the UK cost of living crisis, revealing that millions of households are struggling to make ends meet. According to the poll conducted for the End Fuel Poverty Coalition, one in three UK adults is either in debt to their energy provider or anxious about falling behind on payments, with a 13% rise in the price cap expected from July.
The figure climbs to 45% among parents with a child under 18 and 35% among disabled people. Among those in energy debt, the median amount owed to an energy supplier stands at £750. The survey also uncovered that 13% of those in debt or concerned about missing payments owe money to someone who makes them feel scared, a figure that rises to 24% among those already in arrears.
Desperate Measures to Cope
Some 32% of those already in energy debt had attempted to reduce their energy consumption over the past 12 months by switching off the heating or taking shorter showers, while 25% said they kept their home colder or warmer than was comfortable, and 21% had missed rent or mortgage payments. More than one in five (21%) of those in energy debt have needed to skip meals, and 18% have turned to a food bank for support.
Mixed Supplier Support
The End Fuel Poverty Coalition found that supplier support for struggling households has been mixed. While 15% of those in arrears had been referred to a hardship fund and 15% were on a repayment plan, 13% reported having no contact from their supplier in the past 12 months. Fewer than one in five (18%) of those in arrears felt they had been treated fairly by their supplier, and just 8% had been referred to debt advice.
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: "These figures lay bare the true cost of years of failure to fix energy debt caused by the sharp increases in bills. Millions of people are in debt to their energy company or worried about falling behind, and yet the price shock profiteers are posting billions in profits."
He added: "The figures also show that this is a can't pay crisis, not a won't pay one. Very few people who are in energy debt are also in high-earning households. Instead, it is ordinary people who are skipping meals, visiting food banks and, most alarmingly, resorting to risky forms of borrowing just to keep the lights on. The energy industry, which has caused this debt through its profiteering, must be made to contribute to clearing this debt mountain."
Calls for Debt Relief and Efficiency Investment
Janine Michael, chief executive of the Centre for Sustainable Energy, said: "At the Centre for Sustainable Energy, we speak to people every day who are struggling to keep up with their energy bills – not because they won't pay, but because they can't. The long-awaited energy debt relief scheme must be brought forward urgently, and people in debt need access to proper debt advice, not just a letter from their supplier."
She continued: "But debt relief alone is a sticking plaster. The real fix is reducing the amount of energy households use in the first place through proper investment in energy efficiency and phasing out gas. Until we address that, we'll be having this same conversation next winter."
Ned Hammond, deputy director of customer policy at Energy UK, said: "Household energy debt has doubled to £5.5 billion in recent years and continues to spiral out of control – it could reach £7 billion by the end of this year. Too many households genuinely can't afford to cover their energy costs, but current regulations also make it all too easy for customers to fall into arrears, with limited routes to get out."
He added: "Suppliers are doing what they can to help customers and reduce debt levels, but the sheer scale of the problem means the industry can't fix it alone. To overcome this crisis, a comprehensive debt strategy is required. This should start with the swift launch of Ofgem's Debt Relief Scheme."
The survey, conducted by Opinium among 2,000 UK adults between May 29 and June 1, revealed that 9% were already behind on payments to their energy supplier, while a further 22% – approximately 12 million people – were concerned about falling into arrears on their energy bills.
