The number of consumers living in households that are in debt to their energy supplier has exceeded 5 million people, Citizens Advice has revealed.
A survey of over 4,000 people conducted towards the end of 2023 on behalf of the consumer watchdog revealed that more than 2 million people across Great Britain will self-disconnect this winter because they cannot afford to top up their prepayment meter (PPM).
This, the charity added, is likely to be an underestimate as colder weather and higher prices mean monthly costs will be around 40% higher in January to March 2024 than October to December last year.
The charity is expecting this to be its “busiest winter ever” for helping struggling PPM customers, with things set to be worse than last year when 1.7 million people disconnected at least once a month and 800,000 people went more than 24 hours without gas and electricity.
As such Citizens Advice is warning that existing support is “simply not going far enough” and that a long-term plan to tackle spiralling energy debt is now essential.
Soaring bills have seen energy debt hit a record level of £2.9 billion and the charity’s research suggests a quarter of consumers cannot afford their essential bills and one in ten households have had to borrow money in the past six months to cover their energy bills.
It added: “The energy price crisis is impacting households in other ways too. Half (49%) of those in debt to their energy supplier have turned off the heating in their homes as a result of being in energy debt.
“And almost 3 million people live in households where they have skipped meals, cut back on food spending or sold or pawned possessions in the last year to save money to keep their meter topped up.”
The research also found that children are among the groups most impacted by the crisis, with households with children under four twice as likely to be in debt and be forced to disconnect from their gas and electricity than those without children.
Half of PPM consumers with children under four disconnected in the past year because they could not afford to top up, compared to a quarter (23%) of people with no children.
As a result of its findings, the consumer charity is calling for urgent reform of the Warm Home Discount which it says has failed to keep pace with rising prices, and that it should be increased and made available to a wider range of households.
It is also calling on the government to work with Ofgem to develop a joint action plan to deal with energy debt. This, it added, should include increased funding for energy debt support to help meet spiralling demand.
Additionally, as the practice of force-fitting PPMs restarts, the energy regulator “should monitor the impact of groups who missed out on absolute protection from this practice and expand the rules if there is evidence of significant harm”.
Clare Moriarty, chief executive of Citizens Advice, said: “Our frontline advisers are helping more people than ever who can’t pay their energy bill. Record numbers are in debt to their supplier and millions with a prepayment meter are too often going without heating and hot meals because they can’t afford to top up.
“The government has not provided new energy bill support for those in need and has run out of time to develop the long-term approach it promised by April 2024. Without immediate action, we risk re-running this same crisis every winter.”
An Ofgem spokesperson said: “Ofgem shares the concerns of Citizens Advice about the issue of rising debt and customers self-disconnecting from their energy supply amid the wider cost of living pressures.
“We already have introduced tougher rules to make sure that energy companies do more to spot the signs when a customer may be struggling and step in to offer support, including working out affordable payment plans and providing emergency credit to reduce the risk of self-disconnection.
“We work closely with Citizens Advice and other consumer groups and charities to address the issues people are facing – and we will continue to explore more options to help struggling and vulnerable customers.”
A Department for Energy Security and Net Zero spokesperson said: “We recognise the cost-of-living challenges families are facing, which is why we are spending £104 billion supporting households with their bills.
“While energy prices are lower than last winter, our Energy Price Guarantee remains in place to protect people until April, and we encourage anyone experiencing difficulties with their energy bills to speak with their supplier.
“We’re also continuing to support the most vulnerable, with three million households expected to benefit from the £150 Warm Home Discount, £900 for those on means-tested benefits, and an extra £150 for disabled people.”