Energy debt hits record high

The amount of money owed by households to energy suppliers has hit £4.4bn - a record high.

Between April and June 2025, energy debt and arrears in England, Scotland and Wales rose by £750m year-on-year.

But worryingly, more than a million households don’t have an arrangement in place to repay what they owe.

That’s another record high.

Ofgem seeks to tackle growing debt problem

The watchdog is seeking to tackle this growing issue

Ofgem has set out proposals for a new debt relief support scheme. 

Under the plans:

• Suppliers could use the fund to write off debts so large they are unlikely ever to be repaid.
• Households might benefit from “debt matching”, where suppliers would match the repayments made by customers to help them clear arrears faster.
• Consumers would find it easier to access support from charities and debt advice agencies.
• A consistent approach would be put in place across all suppliers, to help stop unsustainable levels of debt building up again in the future.

What help can I get if I’m struggling with energy bills?

If you're struggling to pay your energy bills, here are some things you might be able to do:

• get emergency credit if you’re on a prepayment meter
• apply for a grant or hardship fund from your supplier
• join the Priority Services Register for extra support

To save on energy and reduce your bills, have a read of our 50 smart energy-saving tips.

Also, find out what happens when you have energy arrears and how to deal with the situation.

We can check you’re getting all the benefits you’re entitled to and help you create a realistic budget.