Energy Debt Levels Up 38% on Last Year and Rising

Debts associated with domestic energy supplies were worth over £2 billion as of April this year, which represents an increase of 38 per cent compared to the same point in 2021.

The charity Debt Justice has been poring over the regulator Ofgem’s latest data and found that energy debt was at an unprecedented high after the first few months of this year.

Worryingly, the figures published in April were recorded in advance of dramatic increases to the energy price cap, which have seen people’s energy bills increase very sharply in recent months.

For a growing number of individuals and households in Scotland and across the UK, rapidly rising energy bills have become a huge financial burden and a contributing factor in problem debt situations for many people.  

Debt Justice has said that the UK government should not only be capping energy prices as they’ve now pledged to do but also helping to pay off the energy debts of low-income households who are already struggling.

The charity is convinced that scheduled increases to the energy price cap are likely to push millions more people across the country into energy debt over course of the coming winter.

“Astronomical energy bills are exacerbating Britain’s household debt crisis,” commented Heidi Chow, executive director of Debt Justice.

“The government cannot afford to ignore record levels of energy debt that will drive even more poverty and hardship for years to come.

“Liz Truss’ plans must include writing off energy debt to give everyone a fighting chance of keeping the lights on this winter.”

Rising energy bills were cited in a recent Scottish parliamentary report as a major reason why Scotland is heading towards a personal debt crisis characterised in part by low-income households having to choose between buying food and paying their bills.

Holyrood’s Social Justice and Social Security Committee warned in its report that the cost of living crisis is having a huge impact in pushing more and more Scots into debt and serious financial difficulty.

If you live in Scotland and you are worried about your personal debt situation for any reason then Scotland Debt Solutions can help. Contact us directly to arrange a FREE and confidential consultation.