Millions of Brits behind on energy bills, report shows

An estimated 5.5 million UK adults are behind on their energy bills, according to analysis of new survey data.

The Money Advice Trust’s research, based on an Opinium survey of 2,000 UK adults and a comparison of data from previous polling carried out throughout 2022 – lays bare the worsening impact the high cost of living is having on households across the UK.

The latest findings confirm the heavy toll that high energy bills are taking on household finances, with 2.1 million more people in energy arrears in April 2023 than in March last year and millions struggling to access help from their energy suppliers.

In the wake of the research, the Money Advice Trust, debt charity StepChange, National Energy Action, Scope and ten other organisations have written to the government calling for a ‘Help To Repay’ repayment-matching scheme to provide a safe route out of debt for struggling households.

The survey suggested that millions more households were struggling with their energy costs in April 2023 than in March 2022, with support from energy suppliers – which is vital to help them repay arrears – proving difficult to access.

An estimated 5.5 million people (one in 10 UK adults) were behind on their energy bills in April 2023 – an increase of 2.1 million compared to March 2022.

Since March 2022, the number of UK adults who are behind on one or more household bill has risen by seven percentage points from an estimated 7.9 million to 11.6 million people. Certain groups are also more adversely impacted:

• A fifth (21%) of people in receipt of means-tested benefits, such as Universal Credit, have gone without food in the last three months
• 50% of people unable to work due to long-term illness or disability said money worries are impacting their health
• Compared to the general population, the proportion of people turning to food banks due to rising costs almost doubles to one in ten among people from a black African or Caribbean background

Amidst worsening household finances, millions more people have been subject to debt collection activity – with many facing unaffordable demands for priority debts such as council tax and energy arrears.

• More than a quarter (26%) of people behind on their council tax said they have received demands for repayments at levels they cannot afford
• An estimated 3.2 million people have received demands from their energy supplier for repayments of arrears that they cannot afford
• Around 2.2 million people on low incomes have had money deducted from their benefits to repay debts – and more than one in four (27%) said they have fallen behind on other bills as a direct result

To support the recovery of the hardest hit households, the Monday Advice Trust is joining other charities in calling for:

• A dedicated government ‘Help To Repay’ scheme for energy arrears, to provide repayment matching and the option to write off energy debts for people dealing with unaffordable arrears
• Urgent reform of government debt collection practices to ensure safe routes out of debt, with affordable and fair repayment options available to all

Joanna Elson, Chief Executive of the Money Advice Trust, said: ‘Energy bills might finally be falling – but for millions of households, the effects of this cost of living crisis are already baked in. With more people falling behind on energy and other essential bills and millions facing unaffordable demands for repayment, we need urgent action to make sure everyone has access to a safe route out of debt.

‘The Help To Repay payment-matching scheme we are proposing will help those who otherwise will simply not be able to dig themselves out of the energy arrears that this crisis has created. And for those most in need, the government should introduce an Essentials Guarantee to link the rate of Universal Credit to cover the cost of essential goods like food and energy.’

Following this news, new analysis from the TaxPayers’ Alliance has found that council tax bills have skyrocketed since the levy began, causing more of a financial burden on people across the UK.