Half the nation struggling to pay energy bills – before winter has even begun

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Almost half the nation is now finding it difficult to pay their energy bills, while almost a third are struggling to pay their rent or mortgage – and more people are finding it tough compared to earlier this year.

The fact that 1 in 25 people are already behind on their energy bills, even before we’ve hit the winter and colder weather should be a source of alarm for the nation. And many are faring worse, with renters, disabled people and those from minority ethnic backgrounds all being more likely to have already missed payments.

Last week’s news that the Energy Price Guarantee will only last until April will have been dismaying news for anyone who has already seen their energy bills rise significantly and will be wondering how they can afford even higher bills come April. Those on pre-payment meters are facing a particularly tough time, with almost three-quarters already reporting difficulty in being able to afford topping up their meter. Those on pre-payment meters will often have had past problems paying bills, but are also hit with a higher cost of energy – compounding their money problems.

It’s inevitable that more and more people will miss energy, rent and mortgage payments as we get further into winter and the continuing cost of living rises really start to hit more homes. These figures are the tip of the iceberg and the landscape in April, when we are the other side of the coldest season, will surely look more bleak.

Source: the latest Cost of Living data from the Office for National Statistics

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Written by:
Laura Suter

Laura Suter is head of personal finance at AJ Bell. She is a multi-award winning former financial journalist, having specialised in investments. Laura joined AJ Bell from the Daily Telegraph, where she was investment editor. She has previously worked for adviser publications Money Marketing and Money Management, and has worked for an investment publication in New York. She has a degree in Journalism Studies from University of Sheffield.