June - August 2024 Update

(1) Energy Debt and High Court Enforcement

Energy debt is one of the key issues we see clients presenting with when they approach our service, particularly as many want to access the Winter Warmth grant.

In recent years, court action for energy debts has risen exponentially, with the amount of clients supported by Citizens Advice with energy-related CCJs more than doubling when comparing the start of 2023 with the start of 2024, and predictions suggesting that the number will continue to rise throughout the year.

As energy debt is not regulated by the Consumer Credit Act, this leaves clients vulnerable to high court enforcement, and this is also something that appears on the increase. This means that we need to be vigilant when advising clients on energy arrears, ensuring that in conjunction with potentially offering winter warmth, full debt consequence advice must be given including the risk of court action and high court enforcement, and whenever we see imminent threat of enforcement for a debt, we must inform client of Breathing Space and offer to refer straight to a specialist debt advice provider such as Nucleus.

Please see some resources here which can be read as a refresher and provided to clients:

https://nationaldebtline.org/get-information/guides/gas-and-electricity-arrears-ew/

https://nationaldebtline.org/get-information/guides/high-court-enforcement-ew/

https://www.citizensadvice.org.uk/debt-and-money/action-your-creditor-can-take/bailiffs/how-bailiffs-should-treat-you/how-bailiffs-should-treat-you-if-youre-vulnerable/

https://nationaldebtline.org/get-information/guides/breathing-space-ew/