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Only one in ten (10%) billpayers intend to ask their supplier to return some of their credit balances, new research has found.
A weighted survey of 4,000 UK billpayers conducted by Opinium on behalf of Uswitch.com found that two thirds (66%) say they plan on leaving their credit balances with their supplier in a bid to reduce their monthly bills.
The research found that almost 11 million households have a collective £1.4 billion in credit balances with their supplier.
However this figure is £500 million lower than last year, suggesting that rising prices have made it more difficult for people to build up credit.
Nearly two in five households (38%) are in credit with their supplier which is a decrease of almost a fifth (18%) compared to last year. The average amount of credit is £135, but more than 1 million consumers have more than £300 credit with their supplier.
Increased debt
Conversely the research found that households collectively owe £1 billion to suppliers, double the amount owed a year ago.
Almost a quarter (23%) of customers are now in energy debt, a figure which has risen by more than half (52%) compared to this time last year. A total of 6 million homes owe on average £188 to their energy retailer.
Uswitch said the amount of households in debt is more than two million higher than at any point in the last four years, and the average debt is 54% higher than it was in 2019.
The average amount owed is £58 more than this time last year, leaving many without what the comparison service called a “war chest” to battle rising bills.
Justina Miltienyte, energy policy expert at Uswitch.com, said: “Higher prices over the winter has meant we are seeing many more people in energy debt at a time when they should be building up their credit again.
“This means that households across the country are likely to see their direct debits rise so they can begin to pay back what is owed, making it tough to prepare for future increases.
“The reality is that the situation is going to get far worse in October when we expect another price rise, so it’s important to take control of your energy use now.”
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