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British household energy debt triples in a decade
A person holding an energy bill

ENERGY debt has tripled in just over a decade, leaving more than a million electricity customers behind on their bills, new research has revealed.

The Resolution Foundation think tank found that the number of people who had fallen behind on their electricity bills with no repayment plan in place had ballooned from 300,000 in 2012 to more than one million by the end of 2024.

Similarly those behind on their gas bills had also increased from 300,000 to 900,000 in the same period.

The research found that over these 12 years, the average electricity debt grew from £500 to £1,600, while the average debt for gas rose from £500 to nearly £1,400.

Council tax debt had also risen dramatically, with arrears rising from £4.6 billion in 2019-20 pre-pandemic to £6.7bn in 2024-25.

The rise in arrears is driven by the increase in bills themselves, the report’s authors say, with families paying 50 per cent more for each unit of gas they use than they were before the energy crisis.

Dwindling support and fast-rising council tax bills has also increased the burden on the poorest households.

Resolution Foundation economist Felicia Odamtten said: “Tackling these financial problems will require additional help with priority bills, such as improved council tax support, and a social tariff on energy bills.

“But all too often, lack of financial resilience is simply a consequence of lack of income and addressing this will mean fixing Britain’s dire record on productivity and real wage growth.”

A government spokesperson said: "We are delivering an energy system that puts people first, with stronger customer protections including automatic compensation for when companies mistreat consumers.

“We are also working to drive debt out of the system and help people with the cost of living, such as expanding the Warm Homes Discount to over six million households this winter."

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