16th Oct 2025 11:33
(Alliance News) - Household energy debt in the UK has hit an eight-year high before winter, figures show.
Households are starting the winter owing GBP780 million to their energy suppliers, the highest debt levels in eight years, a survey for Uswitch found.
Some 3.5 million households owe money to their provider, up 46% from 2.4 million last year, the comparison site said.
The current average household debt figure of GBP223 is 29% higher than last year's GBP173.
Across all households, the average bill payer was GBP128 in credit last year but this has dropped to GBP98 this year – falling below GBP100 for the first time since the energy crisis began.
Households usually pay a fixed amount each month that tends to exceed their actual summer usage in order to build up credit to cover the more expensive winter months.
However, more than two million low-income households – and 10 million UK homes overall – have no energy credit built up to cope with higher winter bills.
Of the 55% of households who do have a credit balance, this has dropped slightly from last autumn's average of GBP222 to the current GBP214.
Recent figures from regulator Ofgem showed that customers owed energy suppliers more than GBP4 billion, an increase of more than GBP750 million on the previous year.
Ofgem's debt figure is the total amount that customers owe their suppliers for unpaid bills, whereas Uswitch is measuring the current balance of a household's energy account.
One in six homes, 16%, with a household income of less than GBP20,000 a year already owe money to their energy supplier before winter, with indebted homes owing GBP60 on average.
One in 10 households in debt to their supplier, 12%, say they cannot afford to pay it off, double that of last year, 6%.
Another 9% plan to move onto a prepayment meter to pay off their debt.
Of those in debt, 34% say their supplier has not contacted them about the amount they owe. However 57% of those who were contacted said they were offered help or advice.
Ofgem's energy price cap rose by 2% from October 1 for a typical household in England, Scotland and Wales, just as cooler temperatures see many switching on their central heating.
This means that the energy bill for the average household paying by direct debit for gas and electricity increased from the previous GBP1,720 to GBP1,755 per year.
Many households reported planning "drastic" measures to reduce their energy bills, Uswitch said, with 40% saying they will wear extra layers at home so they can keep their heating down and a third saying they will turn the thermostat down.
Ben Gallizzi, energy spokesman at Uswitch, said: "It's deeply concerning to see that household energy debt has soared to an eight-year high, which suggests that many homes may face a bill shock soon as direct debit levels are updated.
"The cost of living squeeze and the end of many government support schemes means that households are getting less help than they used to, causing many to fall behind.
"Households use more energy over the winter, so for those paying via direct debit it's ideal to have a cushion of about two months' worth of energy credit at this point in the year.
"If your energy account is going into debt, or you are behind on your bill payments, speak to your supplier as soon as possible."
An Ofgem spokeswoman said: "The current levels of energy debt are unsustainable, and this is a challenge that requires action from everyone – the regulator, government and industry alike.
"It's important we target support at the customers that need it most, while also ensuring people who are able to pay are supported to do so.
"If a customer is struggling they should speak to their supplier about the options that could help them get back on track.
"These could include tailored repayment plans, which can help households regain control and avoid falling further behind.
"We're also working at pace on plans to introduce a debt relief scheme that could help struggling households get back on track and rectify some of the debt that built up as a result of the crisis."
A government spokesperson said: "We are delivering reforms that put consumers first, with stronger protections including automatic compensation when energy companies mistreat billpayers.
"We are working with Ofgem to drive debt out of the energy system. To help people with the cost of living, this winter we are expanding the GBP150 Warm Home Discount to over six million households."
Opinium surveyed 2,000 UK energy bill payers between October 3-8.
By Josie Clarke, PA Consumer Affairs Correspondent
Press Association: Finance
source: PA
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