£233 energy bill warning for millions ahead of winter

Millions are heading into winter in the red on their energy accounts, with average debts climbing to £233.

Total arrears are estimated at £780 million, which is the highest level in eight years, according to a new analysis.

Research by price comparison site Uswitch reveals that more than 3.5 million households now owe money to their energy suppliers, up 46% on last year's figure of 2.4 million.

The average debt has jumped nearly a third from £173 a year ago, while the typical customer's account balance has fallen below £100 for the first time since the energy crisis began.

Uswitch warned that millions are entering the coldest months of the year without a financial buffer to cover higher gas and electricity use.

Around ten million homes have no energy credit at all, including two million low-income households, leaving them exposed to bill shocks as the heating goes on.

The findings come as Ofgem reports that suppliers are owed more than £4 billion in unpaid bills - a rise of £750 million in just a year.

Ben Gallizzi, energy expert at Uswitch, said: "It's deeply concerning to see that household energy debt has soared to an eight-year high, which suggests that many homes may face a bill shock soon as direct debit levels are updated.

"The cost of living squeeze and the end of many government support schemes means that households are getting less help than they used to, causing many to fall behind."

Almost one in six households with an income below £20,000 are already behind on their bills, owing an average of £60, while one in ten say they cannot afford to repay what they owe - double the proportion seen last year.

Uswitch's research also shows that three in ten indebted households say they owe more than they did a year ago.

Alarmingly, a third of those in debt say their supplier has not contacted them about the arrears, though nearly 60 per cent of those contacted said they were offered some form of help or advice.

The average household in credit has a balance of £214, down from £222 last autumn, and just 55 per cent of homes now have any credit built up at all.

Although annual bills have fallen from £2,500 in early 2023 to £1,755 under the current price cap, they remain far higher than before the energy crisis, leaving many struggling as food, rent and mortgage costs continue to climb.

With winter approaching, four in ten households say they will wear extra layers to cut heating costs, while three in ten plan to turn their thermostat down.

Help with energy bills this winter

• Warm Home Discount - Households on certain benefits can get £150 off bills
• Cold Weather Payment - Pensioners and some on low incomes (England/Wales) can get £25 per cold week
• Winter Fuel Payment - Pension-age households can claim £200-£300
• Winter Heating Payment (Scot) - Low-income households in Scotland can claim £58.75

Uswitch is urging bill-payers to check if they are eligible for these schemes or their supplier's own hardship fund.

Mr Gallizzi added: "If your account is slipping into debt, contact your supplier as soon as possible.

"There are hardship funds and support schemes available - and switching to a cheaper fixed deal could also save money this winter."