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Charities and campaigners ramp up calls for a ‘help to repay’ scheme on energy bills

ANTI-POVERTY organisations ramped up calls for the government to open a “help to repay” scheme on energy bills today, after research revealed one in four households are unable to pay arrears.

An estimated 6.4 million adults in Britain and Northern Ireland are now in arrears with their energy bills, up more than 824,000 since April, according to a survey for National Debtline.

It found that 24 per cent of those in arrears can’t afford the balance, with more than a fifth also saying their supplier has not accepted an affordable offer of repayment.

The debt advice service is leading a coalition of 13 organisations calling on Chancellor Jeremy Hunt to introduce a “help to repay” scheme in his Autumn Statement, to provide repayment matching and an option to write off debts.

It comes after recent figures from industry regulator Ofgem showed consumer energy debts had reached a record £2.6 billion.

Money Advice Trust acting chief executive David Cheadle said the government has a “limited window of opportunity to act” and warned households urgently need support this winter.

The research also revealed that millions of people have sold personal possessions, used their overdrafts and turned to high-cost credit in an effort to stay on top of rising energy costs.

The organisations are warning that recent proposals by Ofgem to increase its price cap by £17 per household, to stop suppliers from going bust due to soaring energy debts, will only worsen the problem.

National Energy Action head of policy and public affairs Matt Copeland said: “Failure to provide support to reduce energy bills and energy debt would be catastrophic, leaving millions of households unable to stay warm and healthy this winter.”

End Fuel Poverty Coalition coordinator Simon Francis said: “People are becoming increasingly desperate due to the huge levels of energy debt – which have been caused through no fault of their own, but by record energy bills.

“All this time, energy firms have continued to profit from the misery of people racking up debt and living in cold damp homes.”

He said the “help to repay” scheme would help to get Britain’s households “back onto an even keel.”

A Department for Energy Security and Net Zero spokesperson said the government is supporting the most vulnerable through financial schemes and will “continue to keep all options under review.”

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