More than five million low-income households have no energy credit just as they move into the more expensive winter months, according to an annual survey.
One in 10 homes (11 per cent) with a household income of less than £20,000 a year already owe money to their energy supplier ahead of winter, with those in debt owing £163 on average, the study by Uswitch found.
The energy direct debit system broadly works by customers building up credit during the less expensive summer months in preparation for spending more on gas and electricity over the winter. READ MORE: 'Beautiful inside and out': Young man, 20, killed in M61 crash pictured as family pay tribute However, the survey found a more positive picture nationwide, with just 8 per cent of households – or 2.4 million – in debt on their energy account going into winter, down from more than 11 per cent or 3.2 million last year.
Households’ energy bills have dropped considerably over the last two years, with the energy default tariff falling from £2,500 for average annual consumption in January last year to £1,568 in July this year, before rising 10 per cent in October to £1,717.
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