Energy regulator Ofgem has announced a ‘help to repay’ debt relief scheme to tackle historical debt built up during the energy crisis.
In response, National Energy Action Director of Policy and Advocacy Peter Smith says, ‘Energy debts are totalling over £4.4bn and over a quarter of our clients are in debt. Leaving people to pay back these vast sums, when people in many cases just can’t afford it, isn’t an option.
‘We hope Ofgem’s ‘help to repay’ scheme can go some way towards accelerating the repayment of debt, putting extra money on people’s energy meters or back into their pockets, so they can afford other essentials. It will also help reduce the enormous costs that everyone faces on their bills to service the growing debt.
‘Reducing energy market debt must also go hand in hand with efforts to make ongoing costs more affordable for financially vulnerable households. We welcomed the extension of current levels of support to more households this winter, but energy bills remain unaffordable – on average, they are £500 per year higher than before the energy crisis began.
‘Without more direct support from the UK Government, this means energy debts will continue to cause unbearable stress and anxiety, put up energy prices for other consumers and reduce economic activity.’
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Notes to editors
- National Energy Action (NEA) is the national fuel poverty charity, working across England, Wales and Northern Ireland, to improve the lives of people in fuel poverty. We directly support people with energy and income maximisation advice, and we advocate on issues such as the current energy crisis and the need to improve the energy efficiency of our homes. See: www.nea.org.uk.