Number of missed energy bills starts to climb

The number of energy bills going unpaid has begun to climb ahead of price rises coming into effect, according to research from MoneyExpert.com.

Over the past six months the number of people missing electricity bills jumped from 1.31 million to 1.96 million, an increase equivalent to more than 600,000 bills, the independent financial comparison website says. Gas bills show a similar story, with approximately 1.61 million Brits missing them in the past 6 months compared to 1.16 million in the final 6 months of 2007.

The growing toll of unpaid bills coincides with all of the major energy suppliers increasing their prices in response to rising costs of wholesale oil and gas. Consumers have been hit by two significant price rises, major suppliers raised their prices at the start of the year and then again over the summer. The UK's energy suppliers have passed their increased costs directly on to the consumer meaning that most households will have seen two double digit prices rises which have sent the average family energy bill to more than £1,000.

However energy bills are just one of a number of household bills that are increasingly going unpaid as hard pressed consumers struggle to keep pace with the rising cost of living and the threat of recession. The number of people missing council tax bills has also moved from 2.18 million at the start of the year to 2.58 million.

MoneyExpert.com's research shows around 12 per cent of adults - around 5.37 million people - have missed a household bill of some sort in the past six months including everything from gas and electricity to council tax, fixed and mobile phones and private or council rent.

Sean Gardner, Director of MoneyExpert.com, said: "Households are clearly feeling the strain with energy bills and other household bills going unpaid.

"The fear must be that the number of missed bills will only rise as the full impact of energy price rises hits home in the winter.

"The summer months are traditionally an inexpensive time when it comes to heating the home but the recent price increases and a tougher economic climate have meant that more and more people are struggling. As autumn closes in, we'd only expect these figures to increase as the number of people pushed into fuel poverty jumps.

"Many commentators are now predicting wholesale energy prices to decline over the coming months. We can only hope that the energy companies put their prices down as quickly as they put them up."