The Office for National Statistics (ONS) has revealed alarming statistics indicating that a record number of British households are failing to pay their energy bills. In April, more than 2.7 per cent of gas and electricity direct debits bounced due to insufficient funds in people's accounts.
This figure is the highest since records started in 2019 and triple the rate prior to the onset of the energy crisis. At the same time, there's been a rise in missed loan repayments, with nearly 3.9 per cent of Direct Debit loan payments failing last month, a significant increase from just over 2 per cent during the pandemic.
Despite a slight reduction in the energy price cap this year, the aftermath of last winter's soaring bills continues to plague millions. The recent spell of warm weather has reduced energy consumption for many, but it does little to alleviate the financial strain on those already mired in debt, reports the .
For people who accrued arrears during the colder months, it may be that the current lower usage offers little solace for the financial distress they've already experienced.
Matthew Sheeran, an energy specialist at Money Wellness, said: "These figures are deeply worrying, but they're not surprising. More and more people are facing impossible decisions between heating their homes, feeding their families or keeping up with repayments.
"The good news is that help is available, from supplier grants to debt write-offs. The earlier people ask for support, the better their chances of turning things around."
Financial help to reduce energy debtA wide range of support is available to support you with your energy bills. Money Wellness has highlighted six key things that could help.
Consider applying for energy grants and hardship fundsMany suppliers provide grants to assist those struggling with energy bills. These don't have to be repaid and can help clear arrears or lower future bills.
The British Gas Energy Trust, for instance, is open to everyone, not just British Gas customers, and has written off thousands of pounds in energy debt.
EDF, Octopus, and E.ON also operate similar schemes. You'll typically need to fill out a budget form and provide meter readings and income details.
Talk to your supplier as early as possibleEngage with your supplier as soon as possible.
It might seem daunting, but the best course of action if you're falling behind is to contact your energy company. They are legally obliged to assist you if you're having difficulties.
This could mean a more manageable payment plan, time to apply for grants, or switching to a better tariff. The sooner you reach out, the more they can do.
Look into energy efficiency upgradesEnhancing your home's energy efficiency can help lower bills in the long run. The government's Great British Insulation Scheme offers free or discounted insulation and other upgrades if your home has a low energy rating and falls within council tax bands A to D.
These modifications, such as improved insulation or heating controls, could save you hundreds of pounds a year on your bill. You can check your eligibility online.
Get free debt advice and explore ways to reduce what you oweIf you're dealing with more than just energy debt, consider speaking to a free, regulated debt adviser who can assist. Non-profit organisations such as the Citizens Advice network, Christians Against Poverty, and the National Debt Helpline provide free, impartial, and confidential advice.
Use budgeting tools to stay in controlWhen finances are tight, having a clear understanding of where your money is going can be incredibly helpful. Use a free budgeting tool to help track your spending and identify potential savings.
It might also be beneficial to use a free online checker to see if you're missing out on any benefit support or government grants. Many people find assistance they weren't aware they were eligible for.
Small changes can quickly accumulate and make a significant difference.
This winter scheme provides a £150 discount on your electricity bill during the colder months. If you receive the Guarantee Credit part of Pension Credit, it's applied automatically.
Others on low incomes may also be eligible, depending on their circumstances. In England and Wales, most people don't need to apply, but in Scotland, you might still need to contact your supplier.
Full details can be found on GOV.UK