Hunt urged to wipe £2.5bn energy bill debt before hike

Jeremy Hunt has been urged to use this week's Budget to wipe the energy bill debts accumulated by struggling families across the UK.

- ADAM FORREST

End Fuel Poverty Coalition figures shared with The Independent show the debt mountain from unpaid energy bills will rise from £2.5bn to £3bn if a further price hike goes ahead in April.

Mr Hunt is widely expected to ditch a planned £500 hike in the energy price guarantee (EPG). For the average household, it means annual gas and electricity bills could stay at around £2,500, instead of going up to £3,000.

However, the End Fuel Poverty Coalition warned the nation's debts would still rise to £2.7bn because the six-month universal discount for gas and electricity bills is coming to an end. The coalition of charities has urged the government to write off all debts for pre-payment meter customers, as well as introduce a debt-matching relief scheme for all others in debt.

Under the proposals by the Warm This Winter campaign, every £1 paid back by the customer would be matched by £2 paid back through a central debt relief fund. Campaigners argue that the debt relief measures could be paid for through the £11bn "windfall" the government is estimated to have underspent on EPG support because of falling wholesale prices.