Why millions of households can never seem to get ahead of their energy bills

Millions of households are still struggling with energy debt despite energy prices falling from the record highs seen during the cost of living crisis.

New research from the End Fuel Poverty Coalition suggests the problem is far from over. Almost one in three (31%) adults are either already in debt to their energy supplier or worried about falling behind on their bills. Among parents with children under 18, that rises to 45%.

The research also found that many households are making difficult sacrifices to stay afloat. One in five people already in energy debt have skipped meals, while a similar number have turned to food banks for help.

And there's more bad news on the way.

From 1 July, household budgets will come under fresh pressure as Ofgem's energy price cap increases by 13%, adding around £18 a month to the bill of a typical household.

For those already living on the financial edge, this increase will make an already difficult situation even harder.

The hidden bill many households are still paying

While energy prices are no longer at the levels seen during the height of the energy crisis, many households are still paying the price.

End Fuel Poverty Coalition's research found the typical person in energy debt owes around £750 to their supplier. But our figures suggest that for households seeking debt advice, the problem is often much more severe.

Our data shows average energy debt has increased by 23% over the past three years, rising from £1,848 in 2023-24 to £2,270 in 2025-26.

At the same time, the number of people seeking debt advice with energy arrears has surged.

Three years ago, around one in three people seeking help had fallen behind on their energy bills. Today, it's almost one in two.

For many households, this means energy debt has become a permanent part of their monthly budget.

They're not just paying for the gas and electricity they're using today. They're also repaying debt built up during the pandemic, the energy crisis and years of rising living costs.

It's creating a form of "living debt", where households can cover their current bills but can never quite catch up with what they already owe.

Why energy debt is proving so difficult to clear

The problem isn't simply that energy bills were high.

It's that many households used credit cards, overdrafts, Buy Now Pay Later products or borrowed from family and friends to get through the worst of the crisis.

Others built up arrears directly with their supplier.

Now, even though prices have fallen from their peak, many budgets remain stretched by higher housing costs, food prices and everyday essentials.

That leaves little room to pay off historic energy debt.

For households on low incomes, every pound going towards arrears is a pound that can't go towards savings, emergencies or improving their financial situation.

The End Fuel Poverty research highlights the lengths some households are going to in order to cope. Around a third of people already in energy debt said they had cut back on energy use by turning the heating off or taking shorter showers, while a quarter said they were keeping their home colder than was comfortable.

More worryingly, one in five had missed a rent or mortgage payment because of financial pressures linked to their energy costs.

These figures show that energy debt is no longer just an energy issue. It's affecting every part of household finances.

The households most at risk

Our analysis shows that around 87% of energy arrears cases involve households receiving means-tested or disability-related benefits.

This includes people receiving universal credit, pension credit and personal independence payment (PIP).

Many are already living on fixed or limited incomes, making it difficult to absorb unexpected increases in household bills.

As a result, even relatively small price rises can have a significant impact.

Some households are turning to risky borrowing

Perhaps the most concerning finding from the End Fuel Poverty Coalition research is that some households appear to be borrowing money simply to keep up with essential bills.

Among people already in energy debt or worried about falling behind, 13% said they owed money to someone who makes them feel scared. Among those already in arrears, that figure rose to almost one in four.

This highlights why it's so important to seek help early. Falling behind on energy bills can feel overwhelming, but there are safer sources of support available.

What should you do if you're struggling with energy bills?

If you're worried about paying your energy bills, the most important thing is not to ignore the problem.

The earlier you seek help, the more options you're likely to have.

Speak to your energy supplier

Energy suppliers have a responsibility to help customers who are struggling.

Depending on your circumstances, they may be able to set up an affordable repayment plan, offer temporary payment support or pause debt collection activity while you get help.

Check whether you're missing out on support

Millions of pounds in benefits and financial support go unclaimed every year.

If you're struggling, check whether you're entitled to benefits such as universal credit, pension credit, personal independence payment (PIP) or attendance allowance.

Even a small increase in income can help relieve pressure on your budget. You can use our free online benefits checker to see if you qualify for extra support.

Apply for hardship grants

Many energy suppliers offer grants that can help clear existing energy debt.

You don't always need to be a customer of the supplier running the scheme to apply. E.g., the British Gas Energy Trust offers grants of up to £2,000 to households across England, Scotland and Wales regardless of who supplies their energy.

There are also local welfare assistance schemes and charitable grants available in some areas. Turn2us has a grants search tool that can help you find support.

Check whether your local Crisis and Resilience Fund can help

Many councils continue to distribute support for energy bills, food and other essentials through the new Crisis and Resilience Fund, which replaced the Household Support Fund in April 2026.

The help available varies depending on where you live, but councils have been encouraged to provide cash support where possible.

Get free debt advice

If energy debt is only one part of a wider financial problem, debt advice can help you understand all your options.

Our advisers can help you create a budget, check you're receiving all the support you're entitled to and find a solution if you're struggling with multiple debts.

Why we want a social tariff

Consumer groups have long argued that the current system leaves too many vulnerable households without consistent support.

We're among a number of organisations calling for a national social tariff that would automatically reduce bills for eligible households.

This would create a fairer system and prevent people from falling into debt in the first place, rather than relying on them to seek help after financial problems have already developed.

Based on our analysis, around 87% of households we see with energy arrears could potentially meet common eligibility criteria for a social tariff, including receiving means-tested benefits, disability benefits or experiencing financial hardship.