UK household energy debts up 43%

The total energy debt weighing down UK households has hit another historic high, according to new analysis by campaigning group Debt Justice.

The analysis, based on the latest data from the energy regulator Ofgem, reveals that total debt owed by households grew by 43% to £2.5 billion in the 12 months to October 2022.

The figures show that energy debts are already burdening households to an unprecedented degree as cold weather hits the UK and the cost of living crisis snowballs.

Despite government intervention, average energy prices have nearly doubled in six months to £2,500 and are due to rise to £3,000 in April 2023.

Joe Cox, Senior Policy Officer at Debt Justice said:

“Households were already facing a mountain of energy debt before this winter hit and 2023 will see more of the fallout from unaffordable energy bills.

Energy companies that have profited from record energy prices and government subsidy should be taking on much greater responsibility for tackling this debt pile.

The government need to halt court mandated installation of Pre-Pay Meters and strengthen the rights and protections for people in energy debt.”

 

Calculations based on Q3 2022 Ofgem figures available at https://www.ofgem.gov.uk/energy-data-and-research/data-portal/all-available-charts

  • 1,378,079 customers have now agreed a plan with their supplier to repay electricity debt. They have an average debt of £391.
  • 1,151,767 customers have now agreed a plan with their supplier to repay gas debt. They have an average debt of £316.
  • 946,525 electricity customers are in arrears with an average debt of £1,036. A customer is in arrears if they have not paid a bill for longer than 91 days/13 weeks, and there is no formal arrangement to repay the debt.
  • 758,809 gas customers are in arrears and have an average debt of £807.

Figures below adjusted for inflation to allow for more accurate historical comparison.

Total Energy Arrears Adjusted for Inflation

  Electricity Total Arrears Gas Total Arrears Total Energy Arrears CPIH index 2015 = 100 Total (Real 2022 Prices) Quarterly  comparison
Q3 2012 £496,282,694 £447,027,635 £943,310,329 96.1 £1,195,579,585  
Q4 2012 £474,874,411 £421,075,069 £895,949,480 97.0 £1,125,016,976 -5.9%
Q1 2013 £521,066,822 £479,867,700 £1,000,934,522 97.4 £1,251,681,979 11.3%
Q2 2013 £561,682,530 £560,108,917 £1,121,791,447 98.1 £1,392,805,283 11.3%
Q3 2013 £568,917,620 £560,078,438 £1,128,996,058 98.4 £1,397,476,828 0.3%
Q4 2013 £547,428,462 £509,813,364 £1,057,241,826 98.9 £1,302,043,017 -6.8%
Q1 2014 £543,133,514 £493,814,126 £1,036,947,640 99.0 £1,275,759,824 -2.0%
Q2 2014 £584,066,889 £532,169,472 £1,116,236,361 99.7 £1,363,666,888 6.9%
Q3 2014 £594,914,029 £525,935,032 £1,120,849,061 99.8 £1,367,930,016 0.3%
Q4 2014 £584,070,849 £532,171,917 £1,116,242,766 100.0 £1,359,583,689 -0.6%
Q1 2015 £567,130,716 £483,521,618 £1,050,652,334 99.4 £1,287,419,057 -5.3%
Q2 2015 £593,533,797 £523,911,385 £1,117,445,182 100.0 £1,361,048,232 5.7%
Q3 2015 £588,603,067 £504,432,184 £1,093,035,251 100.2 £1,328,659,616 -2.4%
Q4 2015 £568,933,461 £464,570,552 £1,033,504,013 100.4 £1,253,792,717 -5.6%
Q1 2016 £573,641,708 £464,889,896 £1,038,531,604 100.1 £1,263,667,826 0.8%
Q2 2016 £591,413,389 £483,838,584 £1,075,251,973 100.8 £1,299,262,801 2.8%
Q3 2016 £597,451,177 £469,626,420 £1,067,077,597 101.2 £1,284,289,045 -1.2%
Q4 2016 £580,629,195 £434,750,120 £1,015,379,315 101.9 £1,213,672,233 -5.5%
Q1 2017 £587,190,579 £442,008,218 £1,029,198,797 102.3 £1,225,380,386 1.0%
Q2 2017 £620,589,880 £467,980,517 £1,088,570,397 103.4 £1,282,281,183 4.6%
Q3 2017 £616,728,042 £455,970,377 £1,072,698,419 103.9 £1,257,504,018 -1.9%
Q4 2017 £619,021,892 £446,234,861 £1,065,256,753 104.7 £1,239,238,515 -1.5%
Q1 2018 £638,682,502 £448,088,822 £1,086,771,324 104.8 £1,263,060,565 1.9%
Q2 2018 £680,404,064 £488,783,117 £1,169,187,181 105.8 £1,346,001,878 6.6%
Q3 2018 £698,268,248 £496,460,348 £1,194,728,596 106.3 £1,368,936,435 1.7%
Q4 2018 £683,495,265 £458,948,092 £1,142,443,357 106.9 £1,301,680,083 -4.9%
Q1 2019 £734,453,056 £490,667,290 £1,225,120,346 106.7 £1,398,497,265 7.4%
Q2 2019 £799,294,540 £541,279,112 £1,340,573,652 107.8 £1,514,674,126 8.3%
Q3 2019 £811,257,757 £526,235,312 £1,337,493,069 108.2 £1,505,606,800 -0.6%
Q4 2019 £792,896,640 £500,487,193 £1,293,383,833 108.4 £1,453,267,074 -3.5%
Q1 2020 £798,051,606 £517,730,656 £1,315,782,262 108.5 £1,477,071,701 1.6%
Q2 2020 £910,825,023 £594,623,922 £1,505,448,945 108.7 £1,686,878,395 14.2%
Q3 2020 £949,980,770 £599,839,514 £1,549,820,284 109.1 £1,730,230,161 2.6%
Q4 2020 £898,623,018 £553,483,478 £1,452,106,496 109.3 £1,618,175,400 -6.5%
Q1 2021 £923,180,958 £616,542,179 £1,539,723,137 109.5 £1,712,678,339 5.8%
Q2 2021 £1,016,640,834 £651,716,603 £1,668,357,437 110.9 £1,832,334,859 7.0%
Q3 2021 £1,073,129,116 £677,977,468 £1,751,106,584 112.0 £1,904,328,410 3.9%
Q4 2021 £1,118,197,705 £673,675,163 £1,791,872,868 114.1 £1,912,796,804 0.4%
Q1 2022 £1,258,206,299 £867,708,970 £2,125,915,269 115.5 £2,241,874,284 17.2%
Q2 2022 £1,461,118,402 £933,284,087 £2,394,402,489 119.7 £2,436,409,550 8.7%
Q3 2022 £1,519,428,789 £976,317,235 £2,495,746,024 121.8 £2,495,746,024 2.4%

 

Debt Justice (formerly Jubilee Debt Campaign) is a campaigning organisation working to end unjust debt and the poverty and inequality it perpetuates, in the UK and across the world https://debtjustice.org.uk/

The Debt Justice Privacy Policy is available at https://debtjustice.org.uk/privacy-policy-2

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