USWITCH SURVEY FINDS NINE MILLION HOUSEHOLDS IN DEBT OR WITHOUT CREDIT

More than nine million households are entering winter in debt to their energy supplier or with no account credit, according to a survey for Uswitch. The poll found that 40% of households were more worried about paying for energy this winter than last winter. It found that 55% of billpayers had credit on their accounts this year, down from 64% in 2022. Direct debit payments allow customers to build up credit during summer to cover higher winter bills. Among billpayers with credit, 29% had saved £300 or more, the survey found.

The survey put the typical billpayer’s credit balance between £51 and £100. Experts warned that a typical energy bill could rise by nearly £300 in January because of the Iran war. Forecasts suggest that energy bills could see their largest increase in four years. The Uswitch poll found that 43% of billpayers planned to wear extra clothing instead of turning on the heating. It also found that 8% planned to spend less on food to cover energy costs.

Ben Gallizzi, energy spokesman at Uswitch.com, said the energy price cap was forecast to rise by around a quarter in January. He said, “Credit is the cushion that turns a frightening winter bill into a manageable one.” Gallizzi said nearly a quarter of people felt there was nothing they could do about their energy costs. He urged customers deeply in arrears to contact their supplier early and ask for an affordable repayment plan. He also advised them to check whether they qualified for support and said customers on standard variable tariffs could still take action.