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UK Households Enter Winter With Record Energy Arrears as Suppliers Flag Fresh Price Risks

Ofgem is developing a debt‑relief scheme after warning current household energy debts are unsustainable.

Overview

  • A new Uswitch snapshot estimates £780 million is owed by around 3.5 million households, with average arrears near £223, up about 29% year on year.
  • Ofgem data show more than £4 billion in unpaid bills across suppliers, and MPs were told total energy debt could reach £5 billion by Christmas.
  • Pre‑winter buffers are thin, with roughly 10 million homes holding no energy credit, including about two million low‑income households, and average account credit falling to £98.
  • Industry leaders told MPs that non‑commodity costs and policy charges could lift electricity prices, with Octopus warning bills could be around 20% higher in 4–5 years without changes.
  • Regulators and ministers highlight targeted help including an Ofgem debt‑relief plan and an expanded £150 Warm Home Discount, while consumer adviser Martin Lewis urges cutting usage by limiting tumble dryer use, using dehumidifiers, and fitting radiator reflectors.