Budget Planning

Energy debts 'rise by 16%'

11-03-10, 08:59 in Budget Planning
The amount of money people owe to their energy supplier has increased by 16%
The amount of energy debt faced by people in the UK has risen by 16 per cent during the past two years, according to new figures from uSwitch.

Some 5.5 million households across the nation are now in debt to their energy supplier, according to the price comparison and switching service, with 41 per cent of these individuals claiming they owe more now than they did last year.

uSwitch director of consumer policy Ann Robinson commented that energy debt puts many people in a "catch-22" situation.

She said: "Despite knowing they could reduce their bills by moving to a lower cost energy plan, consumers may perceive debt to be a barrier to switching."

People who are struggling to repay their energy supplier can adapt to rising costs by switching to a new provider and by cutting down their energy use at home, she pointed out.

Those who are having ongoing money management difficulties should seek support for their debt problems, according to Frances Walker of the Consumer Credit Counselling Service.

She commented that assistance should be sought "as soon as possible" if people are worried about what they owe.

Posted by Tom Burroughs.ADNFCR-2660-ID-19664858-ADNFCR

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