Economy

Add as a preferred source on Google

More Than Nine Million UK Homes Lack Energy Credit or Owe Suppliers

A poll for Uswitch puts the share of billpayers in credit at 55%, down from 64% in 2022. It estimates 3.4 million households owe suppliers £750 million.

Updated 2 min read
A resident pulls on a cardigan beside a switched-off radiator in a Manchester, England, home. (AI-generated image / EconoTimes)
A resident pulls on a cardigan beside a switched-off radiator in a Manchester, England, home. (AI-generated image / EconoTimes)

A poll for Uswitch estimates that more than nine million U.K. households are approaching winter with no credit on their energy accounts or with unpaid balances, leaving them less room to absorb higher bills.

The Independent reported the findings Wednesday. Britain’s energy regulator, Ofgem, raised its price cap for a typical household by 3.6% to £1,723 on Oct. 1. Forecasters expect a further rise of about 22% in January, the newspaper reported.

The poll puts the share of billpayers in credit at 55% this year, compared with 64% in 2022. Direct debit payments are intended to build account credit over summer to help cover larger winter bills. Among billpayers in credit, 29% had at least £300; the typical billpayer had between £51 and £100.

Households owing their suppliers account for an estimated £750 million of debt, spread across 3.4 million homes, the poll found. That works out to £220 per household on average. Of respondents reporting debt, 65% said a supplier had contacted them about it, while 12% said they had received help arranging a repayment plan.

Concern about costs is shaping household choices. Two in five respondents said they were more worried about paying for energy than last winter. The poll also found that 43% planned to put on extra clothing instead of turning on the heating, while 8% expected to spend less on food to cover energy bills.

Citizens Advice warned that another bill increase would fall particularly hard on working families and disabled households. The charity called for winter crisis support beyond the Warm Home Discount and broader help for people receiving child benefit or personal independence payment (Pip). It said disabled households and families with children can need assistance even when they fall outside the criteria for means-tested benefits.

Citizens Advice also urged the government to fully fund its Warm Homes Plan, which aims to improve cold, inefficient housing. The government’s Budget is due next week.

Related articles

View all