"The Resolution Foundation thinktank found that the number of customers in energy debt has increased and the size of their debts has risen. It found that between 2012 and 2024 the average gas and electricity debts more than doubled to 1,400 and 1,600, respectively, from an average of approximately 500. The number of customers behind on their electricity bills, with no repayment plan, has more than tripled from 300,000 in 2012 to more than 1m at the end of last year, the report found."
"The debt burden has risen after an increase in energy market prices due to dwindling Russian energy supplies into Europe. The Kremlin began holding back gas exports in the summer before it invaded Ukraine in early 2022, causing Europe's gas market prices to reach record highs. Energy bills in the UK remain approximately 600 a year higher than they were before the invasion."
About 1 million households are behind on their electricity bills with no repayment plan, and about 900,000 are behind on gas bills with no repayment plan. Average gas debts rose from roughly 500 in 2012 to about 1,400 in 2024, and average electricity debts rose to about 1,600. Debt increases followed energy market price rises after Russian gas exports were curtailed ahead of the 2022 invasion of Ukraine, pushing European gas prices to record highs. UK energy bills remain roughly 600 a year higher than pre-invasion levels, and households pay about 50% more per unit of gas than before the energy crisis. Reduced council tax support and higher council tax bills have increased financial stress. Consumer debt overall has fallen since 2008, with higher-income households reducing debt by around 21% and lower-income households by about 14% in real terms over comparable periods.
Read at www.theguardian.com
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