Overview
- Ofgem’s latest figures for January–March, published Thursday, show total customer arrears in England, Wales and Scotland have reached a record £4.79 billion, up 5% from the previous quarter and 15% year‑on‑year.
- The regulator says higher wholesale gas prices have driven a roughly 13% rise in the price cap that takes effect on July 1, raising the typical dual‑fuel direct‑debit bill to about £1,862 a year.
- More customers are on repayment plans but many are not: 852,000 electricity accounts and 710,000 gas accounts are repaying debt while average debts for those with plans are £828 (electricity) and £679 (gas).
- Customers without formal repayment agreements face far larger arrears, averaging £1,876 for electricity and £1,623 for gas, leaving over a million accounts at high risk of harm and forced recovery measures such as prepayment meters.
- Charities and industry groups have urged the government and suppliers to launch a funded Debt Relief Scheme and targeted support before winter, while Ofgem says it will publish proposals this summer to reform home‑mover rules and other industry processes that let historic debt accumulate.