Jeremy Hunt urged to clear debts from UK energy bill - set to hit £3bn

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Jeremy Hunt has been urged to use this week's budget to clear the energy bill debts accumulated by struggling families across the UK.

Figures from the End Fuel Poverty Coalition have been shared with The Independent show the mountain of debt due to unpaid energy bills will drop from £2.5 billion to £3 billion pounds if another price hike takes place in April.

Mr. Hunt is generally expected to drop a planned £500 hike in the Energy Price Guarantee (EPG). For the average household, this means annual gas and electricity bills could stay at around £2,500, instead of up to £3,000.

However, End Fuel Poverty Coalition warned that the country's debts would rise further to £2,500. 2.7 billion because the six-month universal reduction on gas and electricity bills is coming to an end.

The coalition of charities has urged the government to cancel all customer debts prepayment meters, as well as introducing a debt relief scheme for all others in debt.

Under the campaign proposals, every £1 repaid by the customer would be matched by £2 repaid by through a central debt relief fund.

Activists say debt relief could be funded through the £11billion 'sheath' the government has allegedly underspent for EPG support due to the drop wholesale prices.

“The government has ample fiscal space, with guaranteed energy prices costing billions less than expected,” said Simon Francis, coordinator of the End Fuel Poverty Coalition. "The ball is in the Chancellor's court.

He added: "This money could be used to help any households that have fallen into debt due to soaring costs energy. There is an opportunity for the government to really help the financially vulnerable and put households back on a level playing field."

National Energy Action has warned that the number of households in dire straits debt would rise from 6.7m to 7.5m in April, even if Mr Hunt freezes the EPG at £2,500.

Joe Cox, senior policy officer for debt justice, said: "It's time for the government to pull its head out of the sand and help households tackle these unpaid debts. We will be watching the spring budget closely."

It comes as UK Hospitality has asked Mr Hunt to provide a new 'shot of oxygen' to pubs and restaurants to help them through the six next few months - including help with energy bills.