The number of households in energy debt has jumped to more than 3million, with under-55s the most affected, according to research.
The average household energy debt has risen 13 per cent to £216, with the number of homes already in arrears up 11 per cent on last year, according to research by comparison website Uswitch.
The number of homes in debt to their energy supplier has risen from 2.8million to 3.2million in a year.
In debt: Over 3 million households are already in arrears to their energy supplier
The highest amount of debt is held by 18-34 year olds, which have an average debt of £236.78, closely followed by 35-54 year olds with arrears of £234.48.
Just eight per cent of over-55s are in debt to their energy supplier, with the average amount of £161.13 owed.
Households have been warned that their energy bills may rise again this winter, despite a fall in Ofgem’s energy price cap this month, because of the lack of Government support.
This Is Money analysis found that customers could be paying up to £100 more this year, and hundreds more than before the pandemic – especially those in smaller homes that consume less energy.
Two fifths of households in energy bill arrears, surveyed by Uswitch, say their debt is already higher than last year.
Meanwhile 28 per cent believe their position is the same as 12 months ago.
Most worryingly, one in seven households say they have moved from being in credit to being in debt within a year.
Energy experts often recommend households build up credit in the warmer months to help protect them from huge bills in winter.
Nearly three fifths of households have built up a credit balance ahead of winter, with an average credit of £236 – down slightly from £249 last year.
Over-55s are in a better position, having built up average credit of £261.24, followed by 35-54 year olds with £235.94. Those between 18 and 34 typically have around £193.93 in credit.
However, Uswitch’s research also found that more than 9 million households have not built up any credit.
Richard Neudegg, director of regulation at Uswitch, said: ‘Building up a war chest of around two months of energy credit is important as we head into winter, and it’s worrying that more than nine million households have no buffer against the coldest months.
‘Average household energy debt for autumn is at the highest level we’ve seen in more than five years. And with the price cap changing every three months – households are facing even more uncertainty this year as prices are expected to rise again in January.’
For those in energy debt, many don’t have a plan on how to improve their situation, with 23 per cent hoping the problem will go away over time.
Almost a fifth plan to pay off the debt in one lump sum, a quarter plan to increase their direct debit, and 13 per cent are hoping to agree a repayment plan. One in ten say they cannot afford to pay off their debt.
| Age group | Average net position | Proportion in debt | Average debt | Proportion in credit | Average credit |
|---|---|---|---|---|---|
| 18-34 | £87.10 | 14% | £236.78 | 55% | £193.93 |
| 35-54 | £116.70 | 12% | £234.38 | 55% | £235.94 |
| Over 55s | £171.50 | 8% | £161.13 | 65% | £261.24 |
What to do if you’ve fallen behind on your energy bills
If you’re struggling to pay your energy bills, or are worried you may miss a payment, you should speak to your energy firm.
Many have dedicated teams to help you and can work out payment plans for big bills.
Neudegg said: ‘If your energy account is going into debt or you are behind on your bill payments, speak to your provider as soon as possible. They should be able to help you find a solution, such as working out a more affordable payment plan.
‘You may also find you are eligible for additional support such as hardship funds and other energy help schemes.
