How much the average UK household owes on their energy bill
Households are entering winter owing £780 million to their energy suppliers – the highest energy debt levels in eight years, according to new research from comparison and switching service Uswitch.com.
Some 3.5 million households owe money to their provider, up 46% from 2.4 million last year. This year’s average household debt figure of £223 is 29% higher than last year’s £173.
The energy watchdog Ofgem recently revealed that energy suppliers were owed more than £4 billion by customers, a rise of more than £750 million on the previous year.
Ofgem’s debt figure is the total amount that customers owe their suppliers for unpaid bills, whereas Uswitch is measuring the current balance of a household’s energy account.
The average account balance of all UK households has fallen for the fourth year in a row. Last year households were in credit with their supplier by an average of £128, but this has fallen to £98 this year, dropping below £100 for the first time since the energy crisis began.
More than two million low-income households – and ten million UK homes overall – have no energy credit at a time of year when it’s important to have built up funds to cope with higher winter bills.
One in six homes (16%) with a household income of less than £20,000 a year already owe money to their energy supplier ahead of winter, with indebted homes owing £60 on average.
Three in ten of those in arrears (29%) say their debt is higher than last year, and a quarter (26%) believe their position is about the same as 12 months ago[5].
One in ten households in debt to their supplier (12%) say they cannot afford to pay it off, double the proportion from last year (6%). Another tenth (9%) plan to move onto a prepayment meter to pay off their debt[6].
Of those in debt, a third (34%) say their supplier hasn’t contacted them about the amount they owe. More positively, nearly three-fifths of those who were contacted (57%) said they were offered help or advice.
Drastic measures
With the cold winter months approaching, many households are planning drastic measures to reduce their energy bills. Two-fifths (40%) say they will wear extra layers at home so they can keep their heating down, while three in ten (31%) say they’ll turn the thermostat down[8].
Just over half of households (55%) have a credit balance ahead of winter. The average amount of credit built up by those with a positive account balance is £214 – down slightly from £222 last autumn.
Households’ energy bills have dropped considerably in recent years, with the energy default tariff falling from £2,500 for average annual consumption in January 2023 to £1,568 in July 2024, before rising to £1,755 earlier this month. But bills still remain high compared with before the energy crisis, with the cost-of-living crisis adding pressure to household budgets on multiple fronts.
