Large number of British residents struggling with overdue energy bill payments, according to recent research
In a concerning turn of events, a survey conducted by the Money Advice Trust has revealed that millions of UK adults are struggling to keep up with their energy bills, with the number of households in arrears significantly increasing since last year.
According to the research, based on an Opinium survey of 2,000 UK adults, an estimated 5.5 million UK adults are behind on their energy bills in April 2023. This represents a seven percentage point increase from an estimated 7.9 million to 11.6 million people since March 2022.
The survey suggests that millions more households were struggling with their energy costs in April 2023 than in March 2022. This worrying trend is further highlighted by the fact that in April 2023, an estimated 2.1 million more people were in energy arrears compared to March 2022.
The financial strain is not just affecting people's energy bills. The survey also found that 50% of people unable to work due to long-term illness or disability said money worries are impacting their health. This underscores the critical need for effective solutions to address this growing issue.
In a positive development, the British government has proposed the 'Help To Repay' payment assistance program for energy arrears. This initiative, which was supported by organisations including Citizens Advice, National Energy Action, and Shelter, aims to provide much-needed support to those struggling to repay their energy debts.
However, accessing this support from energy suppliers is proving difficult for many. The survey indicates that support from energy suppliers, which is vital to help people repay arrears, is proving difficult to access.
The situation is particularly dire for those receiving means-tested benefits, such as Universal Credit. A fifth (21%) of people in this category have gone without food in the last three months. Moreover, compared to the general population, the proportion of people turning to food banks due to rising costs almost doubles to one in ten among people from a black African or Caribbean background.
In response to these concerns, the Money Advice Trust, debt charity StepChange, National Energy Action, Scope, and ten other organisations have written to the government calling for a 'Help To Repay' repayment-matching scheme. This scheme would provide additional financial assistance to those struggling to repay their energy debts, offering a glimmer of hope for those facing financial hardship.
As the cost of living continues to rise, it is clear that more needs to be done to support those most in need. The 'Help To Repay' scheme, if effectively implemented, could provide a much-needed lifeline for many struggling households across the UK.
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