New calls for ‘Help to Repay’ scheme for millions of people unable to clear energy bill arrears
25.10.2023 - 10:25
/ dailyrecord.co.uk
Charities are stepping up calls for the UK Government to introduce a ‘Help to Repay’ scheme on energy bills as research showed one in four households with fuel debts are unable to clear arrears. An estimated 6.4 million people are now in arrears with their energy bills - up more than 824,000 since April, according to a nationwide survey of 2,000 adults conducted last week for National Debtline, which is run by the Money Advice Trust charity.
The analysis found 24 per cent of those with energy arrears are currently unable to repay, with more than a fifth (21%) also saying their supplier has not accepted an affordable offer of repayment.
Ahead of the Autumn Statement next month, the free debt advice service is leading a coalition of 13 charities calling on Chancellor Jeremy Hunt to launch a dedicated government ‘Help to Repay’ scheme for energy arrears, to provide repayment matching and the option to write off debts for people dealing with unaffordable arrears.
This follows recent figures published by Ofgem which showed consumer energy debts had reached a record £2.6 billion.
David Cheadle, acting chief executive of the Money Advice Trust, said: “High energy costs have left millions trapped in energy debt - and these households urgently need support this winter.
“The UK Government now has only a limited window of opportunity to act, which is why we are calling on the Chancellor to use the Autumn Statement to step in with the help people need.”
The research also revealed the difficulties those in energy arrears are facing, with 18 per cent saying they are unable to get through to their supplier when they try to contact them to discuss the debt, and one in four (24%) regularly losing sleep because of worry over energy debts.
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