Household Energy Arrears Reach Record £4.55 Billion

Overview

• Ofgem data show Britain’s household energy debt hit a record £4.55 billion at the end of 2025 after rising more than £750 million in a year.
• Average arrears per debtor stand at £1,773 for electricity and £1,512 for gas, and StepChange reports electricity arrears rose 35% and gas arrears rose 44% between 2023 and 2025.
• More than 1.1 million electricity customers and 926,000 gas customers are in debt with no active repayment plan, which leaves suppliers to recoup losses across all bills.
• Ofgem estimates unpaid‑bill costs are added to every household’s bill, about £145 a year, a regressive effect that hits low‑income families hardest.
• DESNZ statistics show 2.36 million English households are in fuel poverty under the LILEE measure and researchers and charities urge targeted solar, insulation and other efficiency measures to prevent further debt accumulation and reach hard‑to‑access homes.