Energy Costs Pushing Consumers into Debt

Figures released by National Debtline have suggested a significant increase in consumers struggling with fuel debt. The Charity said it had experienced a 181% increase in calls from consumers worried about increasing levels of energy debt in 4 years, with a 10% increase in the last 12 months.

The Money Advice Trust Chief Executive, Joanna Elson OBE, commented: “Fuel debts have now become a major part of our debt landscape and are one of the fastest growing problems we have witnessed at National Debtline. As consumers we have to pay close attention to how much gas or electricity we use and whether or not we have the right tariff, not always an easy decision. It is a concern that so many people will be whether they can afford to boil a kettle or turn on the heating.

The situation is unlikely to improve in the immediate future, given recent Bank of England predictions of a 10-15% of gas and electricity prices over the next year. Tom Lyon, energy expert for uSwitch described the Bank of England prediction as “grim news for consumers”, suggesting that “the average dual fuel bill could hit a record high of £1,279”.

Those struggling with fuel debt are advised to try and negotiate a repayment plan with their energy provider, or to switch to a prepayment meter. Furthermore a number of organisation exist which can give free impartial advice for dealing with debt.  National Debtline can help people to organise their debt management and to consider the best action to take