Three in ten UK adults are currently in debt to their energy company or worried about falling behind, according to research by Opinium for the End Fuel Poverty Coalition. The median amount owed among those in energy debt is £750.
Debt affects parents and disabled people most
The research shows that over four in ten (45%) parents with a child under 18 and 35% of disabled people are in debt or concerned about falling behind. These groups are disproportionately affected by the ongoing energy crisis.
Calls for action from campaigners
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.”
Francis 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 foodbanks and, most alarmingly, resorting to risky forms of borrowing just to keep the lights on.”
Rising energy prices deepen crisis
With energy prices set to rise by another 13.5% next month, Francis warned: “The mental and physical health consequences of energy debt will only deepen. The energy industry which has caused this debt through its profiteering, must be made to contribute to clearing this debt mountain.”
Eva Watkinson, Head of Campaigns at Debt Justice, commented: “The government cannot continue to ignore the energy debt crisis and must prioritise the launch of its long-promised debt relief scheme. Crucially, it should be fully funded through a windfall tax on industry profits, not added to consumer bills. People should not be forced to pay twice for a crisis they did not create.”
Charities urge government and industry to act
Frazer Scott, CEO of Energy Action Scotland, said: “Far too many households are saddled with debt to their energy suppliers which they simply cannot repay. Government, industry and its regulator have provided no effective plan to reduce this debt and help to keep people warm and safe in their homes.”
Scott continued: “Persistently high energy costs means that basic levels of comfort are unaffordable for those on the lowest incomes or for people who have unavoidably high consumption needs because of age or disability or medical condition. This level of energy should never be out of reach.”
He concluded: “The energy industry continues to line the pockets of investors, shareholders and executives through exceptional profits generated, not by good business practices or technological advance but by political and military conflicts around the globe. These profits should be enriching the lives of people who need help the most and who are paying the highest price through declining health and wellbeing.”
