StepChange welcomes Ofgem’s steps to consult on those in energy debt and financial hardship
12 December 2024
Ofgem has today published a consultation aimed at relief and support for those in energy arrears.
Reacting to the announcement, Chief Client Officer at StepChange, Richard Lane, said:
“This wide-ranging consultation, geared towards supporting people struggling with energy debt, is hugely welcome. We have consistently called for a Help to Repay scheme, alongside sector partners, to help households tackle unaffordable energy arrears that have built up over the past few years – so we’re encouraged to see that a debt relief scheme is being explored. We’re especially pleased to see Ofgem look closely at how to raise standards of support for customers struggling with energy debt and preventing it from escalating.
“Ofgem’s proposals will take time to put in place and, with energy costs elevated for the foreseeable future, it is vital that energy suppliers do everything possible this winter to support struggling customers. A long-term solution led by government is also needed to ensure energy is affordable for all, including the introduction of an energy social tariff.
“As the UK’s largest debt advice charity, we know all too well how often people are falling into difficulty due to the cost of energy bills. In recent years energy debt has become one of the most common household debt types that our clients struggle with. Amongst StepChange clients, energy arrears have increased by a third since January 2024 and now stand at an average of £2,601.
“However, with an expectation of increased need for debt advice to help those with energy debt, it’s important that the sector is well-funded and resourced to deal with these challenges and increases in capacity.”
Notes to Editors
- Ofgem’s announcement can be found here