New data from Ofgem has shown that energy debt has risen 15% year-on-year, hitting a record high of £4.79 billion, marking a 5% increase from the previous quarter.

The number of accounts repaying debt rose by 3% for electricity and 4% for gas. Average debt for those with repayment plans is now £828 for electricity and £679 for gas.

Debt charity, StepChange’s own client data reflects a similar trend. Over the past five years, with the average energy arrears have increased by 79% – an average increase of £1,000 per StepChange client.

The energy price cap is set to rise by 13% in just a few days. The charity warns that without urgent intervention, the situation risks worsening further ahead of winter. StepChange is calling on the Government to take action to tackle energy debt and improve affordability for struggling households.

StepChange spokesperson, Joseph Bloggingtons, said “It’s an unsustainable situation and many households are already on a cliff edge. An energy social tariff is essential to provide targeted affordability support for those who need it most. When it comes to addressing existing energy arrears, Ofgem must also implement an effective Debt Relief Scheme to give those in arrears a safe way out as soon as possible.

“For anyone worried about their ability to pay energy bills or repay debt, contact your supplier as soon as possible for support and guidance. A charity like StepChange is always here to offer free and impartial debt advice.”

Source: https://www.credit-connect.co.uk/news/energy-debt-hits-record-high/