Energy debt tops £5bn for the first time

Ofgem’s latest social obligations (debt and arrears) report has revealed that total domestic customer debt and arrears, across a period of more than 91 days, now top £5 billion among households in Britain. This marks a 4.8% increase from Q1 2026 and a 13% year-on-year increase.

This comes as StepChange data further illustrates the pressures on their client base and the wider population, with three in ten (29%) UK adults saying when polled that they are worried about their ability to pay their energy bills over the next six months.

The average energy arrears for a StepChange client year-to-date stand at £2,676.

StepChange is calling on the Government to act to alleviate energy bill pressures, namely with implementation of Ofgem’s debt relief scheme worth £500 million and transforming the Warm Home Discount into a national, tiered social tariff to support the most vulnerable.

Peter Tutton, Director of Policy, Research, and Public Affairs at StepChange, said “As total energy debt tops £5 billion total, we are seeing yet more evidence of sustained pressure on household budgets and an inability to pay regular costs. With further price rises expected in the new year, things stand sadly only to worsen.

“What is most alarming is the 5% increase in total arrears during a period where people tend to use less energy in the warmer spring and early summer months. With winter still to come and the price cap set to rise, financial pressures are highly likely to intensify in the coming months.”