In the last three years alone, total energy debt and arrears have more than doubled.
Official figures suggest the total value now stands at nearly £4.5 billion.
The reality is more sobering; Energy UK’s analysis shows that the true figure is around £5.5 billion.
The typical dual-fuel household now pays an extra £50 per year on their energy bill to cover debt related costs, while standard credit customers pay an astonishing £140. Without urgent intervention, the total amount of debt and arrears owed is likely to hit £7 billion by the end of the year. This would require a further £10-£15 per year to be added to energy bills.
The scale of this crisis requires the urgent implementation of a comprehensive energy debt mitigation strategy delivered jointly by Government, Ofgem, energy suppliers and debt advice agencies. The strategy must incorporate improving targeted support, enhancing data sharing, modernising regulation, and widely communicating the benefits of smart Pay As You Go. Nothing short of the swift and successful execution of this strategy will deliver on the promise of a fair, affordable energy system.
If you require this report in a different format please contact press@energy-uk.org.uk
Downloads
-
Energy UK_Energy Debt Everyone Pays_February 2026
Type: PDF (1 MB)