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Almost a fifth (18%) of households in energy debt are turning to illegal money lenders to help them pay their bills.
The Warm This Winter campaign is calling for the next government to prioritise ending energy debt, after its survey revealed the desperate measures consumers are taking.
The Warm This Winter campaign also reveals that two thirds (67%) of people in energy debt say it has caused them emotional distress and two-fifths (42%) say it has caused them to eat fewer hot meals in order to cut down on energy use.
Warm This Winter spokesperson Fiona Waters said: “The next government will need to act quickly after the election to end energy debt, protect households from the energy market, bring down bills for good, improve housing standards and make Britain a clean energy superpower.
“All we have had so far from politicians are warm words that they understand the crisis. What we need are concrete promises of action.”
The campaign group has also questioned the appropriateness of measures to tackle energy debt – such as prepayment meters (PPMs).
Its survey reveals that levels of emotional distress increase among PPM customers in debt (93% on PPM / 58% on direct debit) as do the numbers reducing hot meals (60% on PPM / 38% on direct debit).
The number of people turning to loan sharks is also significantly higher for PPM customers (36% PPM / 13% direct debit).
Simon Francis, coordinator of the End Fuel Poverty Coalition, added: “Millions of households have fallen into energy debt due to the record high prices.
“The average household has had to find £2,500 in the last few years just to keep their energy usage where it was. When combined with the ongoing cost of living crisis, this is a figure well beyond people’s means.
“While the energy industry has pocketed the profits, struggling families have been abandoned.
“Energy debt is forcing households to wake up in the morning scared of the consequences of using electricity or gas. It’s time to end the punishment of energy debt.”
The Warm This Winter campaign supports calls for a ban on energy firms from selling on debt to debt collectors.
Debt in the energy sector stands at around £3 billion. At the end of 2023, the number of consumers living in households that are in debt to their energy supplier exceeded 5 million people, Citizens Advice research revealed.
If you could warm your home using the warm words from politicians, you may well end up living in a heap of ashes. On the positive side, your arson case would probably end with you living rent free, with a nice warm bed, three round meals per day and your energy debt cancelled.