Energy debt has tripled as cost of living soars

UNDER-PRESSURE FAMILIES FALLING INTO ARREARS

- By NEIL SHAW

BRITISH household energy debt has tripled in a decade as cost-of-living pressures push families into arrears on priority bills, according to a report.

The number of customers falling behind on their electricity bills with no repayment plan in place has more than tripled from 300,000 in 2012 to more than one million at the end of 2024, with the number of customers falling behind on their gas bill also tripling from 300,000 to 900,000 over this period, according to Resolution Foundation research.

The ‘Money On My Mind’ report suggests that positive trends among low to middle-income households included increased saving and falling credit card debts. But new financial worries for families included rising energy debt and council tax arrears “that need to be addressed’ it said.

The report said the poorer half of the 13 million working-age families in Britain still struggled to save, with more than two-in-five having less than £1,000 in available savings. But the average amount owed by all these families had fallen from £2,617 in 2006-08 to £2,256 in 2020-22 - a real-terms fall of 14%.