More than two million people will be cut off from their gas and electricity this winter because they can't afford to top up, Citizens Advice warns
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Charity says it's helping more people than ever who are struggling to pay their energy bill.
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New research reveals 5.3 million people currently live in households in debt to their supplier.
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800,000 people went more than 24 hours without gas or electricity last year because they couldn’t afford to top up.
New analysis from Citizens Advice has found that more than two million people across Great Britain will disconnect from their gas and electricity this winter because they can’t afford to top up their prepayment meter.
The charity is concerned that for many it won’t just be a one off. Its analysis reveals that last year, 1.7 million people disconnected at least once a month. And 800,000 people went more than 24 hours without gas and electricity, unable to make a hot meal or take a warm shower, because they couldn’t afford to top up.
Now Citizens Advice predicts the crisis is set to get even worse in the coldest months of this year, just as suppliers have been allowed to restart forcible installations of prepayment meters.
The charity says it expects this to be its busiest winter ever for helping people who can’t afford to top up their prepayment meter. Its new research shows more than five million people live in households that are in debt to their energy supplier, putting them at risk of debt collection, including being forced on to a meter they can’t afford to keep topped up.
After helping record numbers for energy debt in 2023, Citizens Advice warns that existing energy bill support is simply not going far enough. It says a long-term plan to tackle spiralling energy debt is now essential.
Paying off my energy bill with a credit card - Muhammad’s story
Muhammad, who’s 59, lives alone in East London and has been struggling to top up his prepayment meter since losing his job in October 2023. It’s crucial for him to be able to heat his home because he’s immunocompromised and must stay warm to help avoid life-threatening respiratory infections and manage his arthritis.
He said: “I would rather be in debt than make myself ill by being cold. I’ve resorted to using my credit cards to top up my prepayment meter and I'm in almost £1,500 of credit card debt because of this.
“I’ve tried to access support, but it felt like people were just beating about the bush, trying to find excuses not to help me. Citizens Advice helped me get a fuel voucher to top up my meter in December, but this only lasted until 10 January, because the weather is freezing. Now I’m struggling again.
“Not being able to afford to top up my prepayment meter, and getting into debt because of it – I have sometimes felt like there is no light at the end of the tunnel. I even stopped eating and taking my medication for a while because I felt so down, and ended up in hospital.”
The impact of the energy price crisis
With the removal of government support schemes, average energy costs are as high as last winter for many households. The typical monthly energy bill is expected to come down by at least £20 in April but will still remain at worrying levels.
The impact is stark. Energy debt has hit a record £2.9bn as households struggle to make ends meet and pay their essential bills. Citizen Advice’s new research suggests one in four people can’t afford their essential bills and one in ten households have had to borrow money in the past six months to cover their energy bills.
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 three 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.
To prevent even more families falling into debt, Citizens Advice wants to see urgent reform of the Warm Home Discount. This has failed to keep pace with rising prices, and should be increased and made available to a wider range of households.
The charity also wants the government to work with Ofgem to develop a joint action plan to deal with energy debt. This should include increased funding for energy debt support to help meet spiralling demand.
Households with young children
Citizens Advice is particularly worried about households with children under four, who are twice as likely to be in debt and be forced to disconnect from their gas and electricity than those without children.
It’s found that half of prepay users with children under four had disconnected in the past year because they couldn’t afford to top up, compared to a quarter (23%) of people with no children. Living in a cold home can have significant negative impacts on their health and development.
New rules on force-fitting only provide absolute protection for households with children under two. As this practice restarts, Ofgem 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.
Dame 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.”
Notes to editors
- Citizens Advice is made up of the national charity Citizens Advice; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
- Survey data based on a representative poll of 4,338 adults (18+) in Great Britain conducted by Yonder Data Solutions for Citizens Advice, fieldwork conducted between 6th and 18th December 2023.
- More than two million people will be cut off from their gas and electricity this winter because they can't afford to top up. This estimate is based on the rate of disconnections reported by polling respondents in the 3 months prior to the fieldwork date continuing for the following 3 months. This was 21% of prepay respondents, equivalent to 2.02 million people. This 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 2023.
- Citizens Advice predicts the crisis is set to get even worse in the coldest months of this year because prices are rising from January just as usage increases due to colder weather. A third of annual energy spending normally takes place in the first 3 months of the year.
- Ofgem announced record consumer energy debt of £2.9bn. The true figure is likely higher as this only accounts for debt at least three months overdue and does not include people borrowing money to pay their bills.
- In 2023, Citizens Advice broke the following records: Number of people who can’t afford to top up prepayment meter (more than 2022 and 2021 combined); Number of people helped with an energy issue; Number of people helped with energy debt.
- Almost three 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: respondents were asked which measures they have taken specifically in order to save the credit on their prepayment meter or save money to top up the meter. 31% of respondents selected either 'skipped meals or cut back on food spending', 'sold or pawned possessions' or both.
- Citizens Advice spoke to 27,521 people in 2022 who couldn’t top up their prepayment meter - more than the whole of the previous ten years combined. In 2023 the charity spoke to 38,111 in the same situation.
- Citizens Advice is made up of the national charity Citizens Advice; the network of independent local Citizens Advice charities across England and Wales; the Citizens Advice consumer service; and the Witness Service.
- Our network of charities offers impartial advice online, over the phone, and in person, for free.
- Citizens Advice helped 2.66 million people face to face, over the phone, by email and webchat in 2022-23. And we had 60.6 million visits to our website. For full service statistics see our monthly publication Advice trends.
- Citizens Advice service staff are supported by more than 16,000 trained volunteers, working at over 1,600 service outlets across England and Wales.
- You can get consumer advice from the Citizens Advice consumer service on 0808 223 1133 or 0808 223 1144 for Welsh language speakers.