Ministers have pledged to help households struggling to pay their gas and electricity bills this winter after energy bosses warned that consumer debt had risen to more than £3 billion.
With Labour facing criticism for scrapping the universal winter fuel allowance for pensioners, ministers met energy industry bosses on Wednesday to discuss ways to help households struggling during the coming cold season.
Executives from more than a dozen UK energy suppliers, including British Gas boss Chris O'Shea, met Energy Minister Miatta Van Burle along with consumer groups, charities and regulator Ofgem.
“Despite the challenging circumstances, we are doing all we can to help households struggling to pay their energy bills this winter,” van Burle said.
“Our commitment to protecting vulnerable families is clear and we are committed to delivering winter support this October. We will be working out the details over the coming month to ensure families in need are protected during the colder months.”
The Guardian understands there was “broad agreement” that consumers' energy bill debt had reached a record high of £3.2bn in total and that urgent action was needed to tackle the “alarming” increase.
In the short term, the government is expected to consider calls to double the support provided to homes through the Warm Homes Discount, a scheme that gives £150 to English energy bill payers who receive certain benefits over the winter.
Ministers have also been urged by industry leaders to ease the burden on low-income households by scrapping green taxes on energy bills and moving to a general tax instead.
Energy companies and consumer groups are due to meet with government officials again next month to hammer out more detailed proposals, including plans for a national campaign to raise awareness of existing support available to ratepayers, before Finance Minister Rachel Reeves presents her budget in October.
In the longer term, ministers are also expected to consider a “social tariff” – a discount on gas and electricity – to make energy bills more affordable for the UK's poorest households.
The UK's largest energy suppliers convened last week just hours after Ofgem announced a 10% increase in energy bills to discuss an “ambitious set of commitments” to help households get through this winter.
The new price cap will mean that the average household's annual dual-fuel energy bill will rise to £1,717 from October, up from the £1,568 that has been in place since July, an increase of £149.
Mr Reeves's government has faced criticism after he announced last month that winter fuel payments for 10 million wealthy pensioners would be cut in order to plug a £22bn “hole” in the finances left by the previous Conservative government.
Speaking ahead of the meeting, Van Burle said it was vital energy companies played their part “to prevent more households from falling into debt and to ensure that those already in arrears receive appropriate support”.
She said: “We expect all energy suppliers to get the message across that anyone who is worried about their situation can contact their supplier at any time and there is no need to suffer in silence. It is vital that consumers who are in debt, or at risk of falling into debt, get the support they need from their supplier.”
Industry sources said there was “strong political will” to tackle growing energy debt, but no concrete plans emerged from the meeting.
“Overall it was a very constructive meeting and it was clear that ministers are keen to tackle the issue of rising energy debt – they recognise that this is not just an energy issue but also part of the wider economic pressures facing households,” one minister said.
