More than 9 million households in the U.K. are heading into winter either owing money to their energy supplier or without any credit on their bill, the London Standard reported. This suggests many families have little financial breathing room left for the colder months.

The strain is mounting as another rise in typical energy bills is already projected for January.

Here's what to know

Many households appear to be entering the colder months without the cushion direct debit payments are supposed to build over summer to offset steeper winter energy use.

According to Uswitch, just 29% of billpayers have built up £300 ($400) or more, and only 55% are in credit overall, down from 64% in 2022.

After Ofgem's Oct. 1 increase, a typical household bill rose 3.6% to £1,723 ($2,304). At the same time, around 3.4 million households owe their supplier, for a total of about £750 million ($1 billion), or about £220 ($295) each.

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More background

Even for households that have stayed in credit, the amounts set aside are often small. 

Uswitch found the typical balance is between just £51 ($68) and £100 ($135), leaving little protection against a cold spell or an unexpected bill.

Another 43% of billpayers told Uswitch they plan to wear extra layers rather than turn the heating on. Uswitch found that 40% of billpayers are worried about paying for energy, and 1 in 12 respondents expect to cut back on food spending to cover energy costs.

Households can struggle to recover once arrears build up. Uswitch found that 65% of people in debt said their supplier contacted them about what they owe, but only 12% said utilities helped them arrange a repayment plan.

Citizens Advice warned that another rise in bills would hit working families and disabled households especially hard.

What can be done?

Uswitch spokesperson Ben Gallizzi had advice for affected households. 

"If you are deeply in arrears on your energy account and not sure what to do, speak to your supplier early and ask for an affordable repayment plan. Find out if you could be entitled to support," he recommended.

Gallizzi also said households on a standard variable tariff may still be able to switch to fixed deals that are cheaper than the predicted January cap.

Citizens Advice is calling for broader government action, urging the Chancellor to provide crisis support in addition to the Warm Home Discount.

The charity also wants that support expanded to people receiving child benefit and personal independence payment, arguing that many households with children or disabilities are being left out under the current means-tested system.

The group is also urging the government to fully fund the Warm Homes Plan to upgrade cold, leaky, inefficient homes. It said that investment would help protect living standards in future cold seasons.

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Citizens Advice chief executive Dame Clare Moriarty admitted that the situation was untenable. 

"The Government has promised to protect living standards, but failing to act on both these fronts risks causing immediate, avoidable hardship now and in future winters, for those who can least afford it."

Where can I learn more?

These stories offer more context on the pressures households face as energy costs rise and winter demand picks up. They cover surges in electricity demand, bill-lowering grid programs, and other forces pushing utility costs higher.

• Across Great Britain, data centers are driving up electricity demand as artificial intelligence use expands.

• In the U.S., many households are losing sleep as electricity costs keep rising.

• In New Jersey, ratepayers fear new reactors could leave them with higher bills.

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