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Fuel debt on the increase

10:34am GMT, Wednesday, 21 October 2009

The Citizens Advice Bureau has seen a huge increase in the number of people asking for advice on their gas and electricity bills. The Citizens Advice Bureau has seen a huge increase in the number of people asking for advice on their gas and electricity bills.

The Citizens Advice Bureau (CAB) has seen a 46% increase in the number of people contacting them for advice on how to deal with fuel debts.

This increase is compared to the same period last year, and mainly comprises of people of working age – only 5% were over the age of 65 years old. The majority (80%) were earning half the average UK income, 32% had monthly incomes of under £400, while 25% had a disability.

And, according to figures from uSwitch.com, more than two thirds of people are worried about their winter fuel bills, while one in five households is finding it difficult to afford their energy bills.

David Harker, CAB’s Chief Executive, said: “We are already seeing large increases in the number of people in fuel debt and it is not yet winter. With fuel prices remaining at historically high levels it is essential that people get all the help that is available.

“The government must also commit to increasing the numbers of people taking up the benefits they are entitled to – currently up to £10 billion worth of means-tested benefits go unclaimed – which could soften the blow for those unable to afford such an essential service.”

uSwitch.com, the free and impartial energy comparison and switching service, recommends people move to an online energy price plan. Apparently, this could save up to £249 a year, however only 5% of households are taking advantage.

Will Marples, energy expert at uSwitch.com, commented on the lack of take-up for the online plans: “It’s a shame because this is where competition is really working for the consumer – suppliers are competing hard on price and bringing out ever more competitive plans.

“More work needs to be done on educating and informing consumers – with particular attention paid to those who are less able to go online.”

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