Winter energy prices expected to rise to three year high

Households are paying hundreds of pounds a year more on average than before Russia’s full-scale invasion of Ukraine in 2022 started the energy crisis. Bills have gone up by about 70% compared with the pre-crisis norm, according to industry data.

That means unpaid bills and charges have shot up. Energy UK estimates total debt to have collectively risen to £6bn, with an expectation of it to increase to about £7bn by the end of the year.

The average billpayer in debt, without a payment plan, owed £3,500, it said.

The trade body has called for a flexible discounted tariff for those most in need, funded by taxation. That is supported by many debt charities.

“Without urgent intervention – namely a national social tariff and implementation of the long-awaited debt write off scheme from Ofgem – we expect this [debt] figure to rise in the coming months, and with that see an increase in the number of people coming to us for help with energy bills,” said Emily Whitford, senior public policy advocate at StepChange.

The Trades Union Congress has called for a windfall tax on bank profits to be used to reduce energy bills.

The government is cutting VAT from electricity bills in October, which should knock about £50 off a typical annual bill, and some policy costs were cancelled or shifted in April, but ministers say there is more to do.

Suppliers offer a host of support schemes to anyone struggling to pay, or who is likely to find it difficult.

Energy UK has a list of these schemes, external. But it stresses that companies can often only help if you get in touch with your supplier to tell them you are unable to pay.