The families living on credit card debt just to heat their homes

The high cost of gas and electricity has left about 8 million people across the UK with utility bill arrears of up to three months, research by Debt Advisory Centre has found.

Worrying numbers of those who are in arrears with their utility bills are being forced to rely on credit cards, loans, overdrafts or even pay day loans to cover their energy bills. So while they stay out of energy bill arrears, they take on debt.

While the boss of energy watchdog Ofgem, Dermot Nolan, said last week that energy firms are overcharging customers and bills should come down for the vast majority of people, until a shake-up happens in the energy market, bills are likely to remain unaffordable for millions of people.

And those customers who struggle to pay bills often find themselves being placed on pre-payment meters, which typically charge even higher prices. This means that the poorest and most vulnerable are paying the highest prices and become even more at risk of falling into the trap of not just fuel poverty, but fuel debt.

Our research found that 4 million people on pre-payment meters often can’t afford to top-up their pre-payment cards. Here in Yorkshire, about 40% of those with pre-payment meters are regularly unable to top-up, with 7% being effectively cut-off from heating or electricity every week.

We want to see more help given to people who are struggling with energy bills, so they can switch on to better deals, escape fuel poverty and the potential of fuel debt.

What to do if you are struggling with utility bill arrears

• If your income isn’t stretching to meet bills then get in touch with your utility provider as soon as you can and explain your situation. Never take out credit to meet household bills.

• The most important thing to do if you’re in arrears with your utilities is to carry on paying your bills for your usage. If you don’t do this, your water company could take out a County Court Judgment against you, and your gas or electricity company could forcibly install a pre-payment meter in your home and could charge you for doing so.

• Offer to pay as much as you can realistically afford towards your arrears on top of your normal bill. Even if they don’t accept this amount, pay it anyway. It’s better than paying nothing - at least they can see that you’re willing to make payments, and it will reduce what you owe.

• Sometimes, you can start to struggle with your utility bills because of the cost of making payments on other problem debts like personal loans and credit cards. If this is the case, seek debt advice.

Debt Advisory Centre: 0161 871 4881