Britain's energy debt hits record £4.79 billion as price cap set to rise

The UK energy regulator Ofgem reported that total debt owed to electricity and gas suppliers reached a new record of £4.79 billion, a 5 % increase on the previous quarter and 15 % higher than a year earlier. The figures cover customers in England, Wales and Scotland who have been in arrears for more than three months.

Accounts with repayment arrangements rose to 852,000 for electricity and 710,000 for gas. Average debt for those with a plan stood at £828 for electricity and £679 for gas, both up 4 %. Households without any repayment plan face average arrears of £1,876 for electricity and £1,623 for gas, nearly double the amounts of those with arrangements.

The data were released just days before Ofgem’s price‑cap is scheduled to increase by 13 % from 1 July, which will further raise household energy bills. Ofgem director‑general of markets Neil Kenward warned that rising debt pressures households and limits industry investment. Gillian Cooper of Citizens Advice highlighted a 70 % surge in the number of families she supports with energy debt since 2021, while National Energy Action analyst James Mabey warned of cold homes, anxiety and hard choices for affected households.