UK energy debt at just under £3 billion
Posted on 10th Jan 2024
UK energy debt at just under £3 billion
On You and Yours on Radio 4 this week, it was announced that the UK is in just under £3 billion of energy debt. Energy prices have continued to rise, with Ofgem altering the energy price cap to help suppliers recover some of the mounting debt, whilst trying to reduce costs for consumers.
What is the energy price cap?
The energy price cap is the maximum amount suppliers can charge households per unit of energy on a standard tariff, also known as a variable or default tariff. It covers roughly 29 million households. Ofgem is the regulatory body in charge of this cap, which is reviewed and set every three months. From 1st January 2024, the price cap rose roughly 5%, which could cost the average household an additional £94 annually. From 1st April 2024 the cap is due to change again, with Ofgem to confirm the new details in February.
How can I reduce my energy use?
There are a number of ways to help reduce your energy consumption. The Energy Saving Trust’s Quick tips to save energy highlights some easy changes, including turning electrical items off instead of leaving them on standby and draft proofing windows and doors. The government website GOV also provides information on How to save energy and lower your bills this winter.
How can I get help with my household bills?
If you’re struggling with your bills, support is available from British Gas Energy Trust.
- Find out if you are eligible for the Trusts support funds, which can write-off energy debts. The Energy Support Fund can provide grants up to £2,000 for British Gas customers, and the Individuals and Families Fund can provide grants up to £2,000 for British Gas and non-British Gas customers. Check your eligibility and apply here.
- Take a look at the Trusts Bounce Back Checklist. It contains over 200 links to free support, including resources on benefits, energy bills, debt advice and support schemes.
- Arrange an appointment with one of the 45 Trust funded organisations across Britain. Their money and energy advice projects provide support via advocacy services, income maximisation and benefits checks, tariff switching exercises, budgeting plans, energy efficiency surveys and onward referrals to services such as housing and mental health support. Find a funded organisation local to you here.