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You can find the current article at its original source at https://www.theguardian.com/money/2025/oct/01/homes-in-great-britain-brace-for-winter-with-soaring-energy-debts
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| ‘It’s unsustainable’: homes in Great Britain brace for winter with soaring energy debts | ‘It’s unsustainable’: homes in Great Britain brace for winter with soaring energy debts |
| (about 5 hours later) | |
| As typical annual dual-fuel charge rises to £1,755, charities warn over record £4.4bn owed to suppliers | As typical annual dual-fuel charge rises to £1,755, charities warn over record £4.4bn owed to suppliers |
| Britons preparing to ration energy as Ofgem price cap rises, says charity | Britons preparing to ration energy as Ofgem price cap rises, says charity |
| What is the energy price cap for Great Britain, and can I cut my bill? | What is the energy price cap for Great Britain, and can I cut my bill? |
| Three and a half years after war plunged Europe into an energy supply crisis, millions of households in Great Britain are braced for another winter of painful gas and electricity bills. | Three and a half years after war plunged Europe into an energy supply crisis, millions of households in Great Britain are braced for another winter of painful gas and electricity bills. |
| On Wednesday, the quarterly cap on charges will increase again. Despite a fall in wholesale gas prices, the ceiling for a typical annual dual-fuel bill will rise by 2% to £1,755 to help cover the costs of energy policies and network upgrades. | On Wednesday, the quarterly cap on charges will increase again. Despite a fall in wholesale gas prices, the ceiling for a typical annual dual-fuel bill will rise by 2% to £1,755 to help cover the costs of energy policies and network upgrades. |
| Bills are far lower than during the peak of the energy crisis when the government was forced to step in to subsidise costs. But they remain almost £600 a year higher than before Russia’s full-scale invasion of Ukraine in 2022. And while the cap has fallen, households have racked up growing debts. | Bills are far lower than during the peak of the energy crisis when the government was forced to step in to subsidise costs. But they remain almost £600 a year higher than before Russia’s full-scale invasion of Ukraine in 2022. And while the cap has fallen, households have racked up growing debts. |
| The latest estimates from the industry regulator for Great Britain, Ofgem, put the money owed to energy suppliers at a record high of £4.4bn as of June, an annual rise of more than £750m. In the same month, government figures revealed that a record proportion of British households were unable to pay their energy bills by direct debit because there was not enough money in their bank accounts. | The latest estimates from the industry regulator for Great Britain, Ofgem, put the money owed to energy suppliers at a record high of £4.4bn as of June, an annual rise of more than £750m. In the same month, government figures revealed that a record proportion of British households were unable to pay their energy bills by direct debit because there was not enough money in their bank accounts. |
| Simon Francis, a coordinator at the End Fuel Poverty Coalition, said the figures should “ring alarm bells” in the Treasury because they showed the crisis was not over. “It is simply unsustainable for consumer energy debt to continue to grow unchecked,” he added. | Simon Francis, a coordinator at the End Fuel Poverty Coalition, said the figures should “ring alarm bells” in the Treasury because they showed the crisis was not over. “It is simply unsustainable for consumer energy debt to continue to grow unchecked,” he added. |
| The risks for households struggling to pay their bills are clear. The coalition has warned of thousands of winter deaths linked to freezing homes as well as of vulnerable children living in cold, damp conditions and added pressures on the NHS from poorly heated housing. | The risks for households struggling to pay their bills are clear. The coalition has warned of thousands of winter deaths linked to freezing homes as well as of vulnerable children living in cold, damp conditions and added pressures on the NHS from poorly heated housing. |
| As Britons struggle to pay monthly bills and shift outstanding debts some households have resorted to tampering with their gas and electricity to steal energy. Others are wearing gloves inside and limiting heating to just one room. | As Britons struggle to pay monthly bills and shift outstanding debts some households have resorted to tampering with their gas and electricity to steal energy. Others are wearing gloves inside and limiting heating to just one room. |
| Lindsey*, 62, who lives in Cheshire, said her home needed to be warm because she had multiple health conditions, including asthma and depression. The situation has been made worse by a broken radiator and mould through lack of heating. | Lindsey*, 62, who lives in Cheshire, said her home needed to be warm because she had multiple health conditions, including asthma and depression. The situation has been made worse by a broken radiator and mould through lack of heating. |
| She said: “On days where I’m terrified of the cost of putting the heating on, I tend to lie on my sofa, curl up, pull the sides of my jumper up over my chin to stay as warm as possible. It’s quite lonely and I think that’s no good for my mental health.” | She said: “On days where I’m terrified of the cost of putting the heating on, I tend to lie on my sofa, curl up, pull the sides of my jumper up over my chin to stay as warm as possible. It’s quite lonely and I think that’s no good for my mental health.” |
| The mounting energy debts are pushing bills higher too. Earlier this year, Ofgem added an extra £50 a year to the price cap, which will be handed to energy suppliers to help them cover the cost of unpaid debts. | The mounting energy debts are pushing bills higher too. Earlier this year, Ofgem added an extra £50 a year to the price cap, which will be handed to energy suppliers to help them cover the cost of unpaid debts. |
| The regulator believes that it would prove cheaper for billpayers to help keep suppliers afloat than to foot the cost of bailing them out if they go bust, as a string of companies did in the depths of the energy crisis. “The current levels of energy debt are unsustainable,” an Ofgem spokesperson said. “And this is a challenge that requires action from everyone – the regulator, government and industry alike.” | The regulator believes that it would prove cheaper for billpayers to help keep suppliers afloat than to foot the cost of bailing them out if they go bust, as a string of companies did in the depths of the energy crisis. “The current levels of energy debt are unsustainable,” an Ofgem spokesperson said. “And this is a challenge that requires action from everyone – the regulator, government and industry alike.” |
| The regulator’s data reveals that the number of billpayers in arrears began to stabilise last year but the total amount of debt continued to rise. The number of households in arrears is rising again this year. | The regulator’s data reveals that the number of billpayers in arrears began to stabilise last year but the total amount of debt continued to rise. The number of households in arrears is rising again this year. |
| The number on a repayment plan is well below the peak recorded in the middle of 2022 of almost 1.1m for electricity and 900,000 for gas. An estimated 876,000 households were repaying electricity debts in June and 714,000 were doing the same for gas. | The number on a repayment plan is well below the peak recorded in the middle of 2022 of almost 1.1m for electricity and 900,000 for gas. An estimated 876,000 households were repaying electricity debts in June and 714,000 were doing the same for gas. |
| But the number of households with no repayment plan in place has climbed to new highs: 1.13m for electricity and 926,000 for gas. | But the number of households with no repayment plan in place has climbed to new highs: 1.13m for electricity and 926,000 for gas. |
| Chris Norbury, the chief executive of energy supplier E.ON, said: “If you look at our debt book it tells a story: fundamentally, there are three types of customer. There are people who have sadly fallen off the edge financially and energy debt there is ultimately a symptom of poverty. | Chris Norbury, the chief executive of energy supplier E.ON, said: “If you look at our debt book it tells a story: fundamentally, there are three types of customer. There are people who have sadly fallen off the edge financially and energy debt there is ultimately a symptom of poverty. |
| “The second group of people that we see showing up in our debt book are people who have never struggled to pay their energy bill before, but they have started to through the energy crisis. Whenever these people engage with us we will always offer support. | “The second group of people that we see showing up in our debt book are people who have never struggled to pay their energy bill before, but they have started to through the energy crisis. Whenever these people engage with us we will always offer support. |
| “Then, sadly, we see a growing cohort of customers who can pay, but for whatever reason won’t pay. Ultimately the customers in this category are costing everyone else more. It’s important that we target support for those who need it most. | |
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| “The UK is, in many ways, an outlier when it comes to targeted price protection for energy costs. Virtually every other market we operate in in Europe has some form of targeted price support.” | “The UK is, in many ways, an outlier when it comes to targeted price protection for energy costs. Virtually every other market we operate in in Europe has some form of targeted price support.” |
| E.ON offered £92m in discounts to struggling customers last year and £72m of debt support the year before. | |
| The scale of the debts along with this week’s price cap hike stand in stark contrast to Labour’s pre-election claim that it would cut energy bills by £300 a year by the end of the decade. | The scale of the debts along with this week’s price cap hike stand in stark contrast to Labour’s pre-election claim that it would cut energy bills by £300 a year by the end of the decade. |
| The government is under pressure to improve the energy efficiency of leaky homes and bring down bills in the longer term through market reforms. | The government is under pressure to improve the energy efficiency of leaky homes and bring down bills in the longer term through market reforms. |
| Ofgem is also “working at pace” with the government and the industry on a proposed debt relief scheme, which is due to be finalised before the end of the year. The government has put forward plans to expand the £150 warm home discount to help around 6m households. | Ofgem is also “working at pace” with the government and the industry on a proposed debt relief scheme, which is due to be finalised before the end of the year. The government has put forward plans to expand the £150 warm home discount to help around 6m households. |
| Gillian Cooper, a director at Citizens Advice, warned that expanding the scheme was welcome but “not enough to turn the tide”. “We’ve been clear that the government must explore options that give more support to people on low incomes with the highest energy costs,” Cooper said. | Gillian Cooper, a director at Citizens Advice, warned that expanding the scheme was welcome but “not enough to turn the tide”. “We’ve been clear that the government must explore options that give more support to people on low incomes with the highest energy costs,” Cooper said. |
| The charity is one of many organisations calling for targeted support for low-income households, which could include a social energy tariff at a discounted rate. | The charity is one of many organisations calling for targeted support for low-income households, which could include a social energy tariff at a discounted rate. |
| The spokesperson for Ofgem said: “We know allowing households to build up unsustainable debt isn’t the right thing to do, and it’s vital that people pay for the energy they use as increasing levels of debt drive up costs for everyone.” | The spokesperson for Ofgem said: “We know allowing households to build up unsustainable debt isn’t the right thing to do, and it’s vital that people pay for the energy they use as increasing levels of debt drive up costs for everyone.” |
| *Name has been changed | *Name has been changed |
| This article was amended on 1 October 2025. An earlier version said that E.On offered £82m in discounts to struggling customers last year; that should have said £92m. |