Households turning to debt advisers for help with unpaid energy bills owe an average of £1,800 according to fresh data.
The figures emerge as millions of families face another increase in energy prices on New Year’s Day, with many entering 2025 having exhausted their finances over the festive period.
Money Wellness, Britain’s largest free debt counselling service, reports that enquiries about energy arrears typically surge during winter months, when increased heating demands coincide with Christmas spending pressures.
“For many households, energy debt is no longer a short-term problem; it’s become a permanent crisis,” said Sebrina McCullough, director of external relations at Money Wellness.
“Owing £1,800 is devastating when you’re already choosing between heating and food.”
The Government has pledged that average household bills will drop by approximately £150 from April 2026, once certain levies are stripped from domestic energy costs. Suppliers are expected to pass these savings on to customers across standard, fixed and prepayment tariffs.
However, Money Wellness argues this relief arrives far too late for families already drowning in arrears.
“Any reduction is welcome, but it’s still several months away and doesn’t help people who are already in serious difficulty right now,” McCullough said.
The debt charity is pressing ministers and energy companies to establish social tariffs for gas and electricity, mirroring schemes already operating for water, broadband and mobile services.
Pensioners are being hurt by the ongoing financial issue of energy debt | GETTY/PA
“Social tariffs have proved they work in other essential services,” McCullough added. “Without targeted support, people on the lowest incomes will continue to fall further behind.”
Money Wellness is encouraging anyone concerned about energy arrears to seek assistance promptly, highlighting several avenues of support available to struggling households.
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Most energy providers operate hardship funds designed to clear or reduce outstanding debts.
The British Gas Energy Trust, for instance, offers grants reaching £1,700 for eligible applicants, with some assistance available even to customers of other suppliers. EDF, E.ON Next, OVO, Octopus and Scottish Power run similar programmes based on financial circumstances or vulnerability.
Ofgem regulations require suppliers to negotiate affordable repayment arrangements with customers
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PAOfgem regulations require suppliers to negotiate affordable repayment arrangements with customers, including reduced monthly instalments, payment holidays or extended terms for clearing arrears.
The Warm Home Discount Scheme offers £150 off electricity bills for low-income households during winter. Those claiming Pension Credit, Universal Credit or income-based Jobseeker’s Allowance often receive this automatically.
Prepayment meter customers unable to afford top-ups may access emergency credit from their supplier or obtain fuel vouchers through local councils and charities such as the Fuel Bank Foundation.
These vouchers can be exchanged at shops to add credit directly to meters, while many councils also distribute energy vouchers or cash payments via the Household Support Fund.
The Warm Home Discount Scheme offers £150 off electricity bills for low-income households during winter
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GETTYSome households qualify for free or subsidised improvements to make their homes more energy efficient, including insulation upgrades delivered through council schemes or supplier programmes.
Eligibility depends on income, health conditions and location.
Those receiving benefits such as Pension Credit or Universal Credit can use the Fuel Direct scheme, which deducts energy payments and debt repayments directly from their benefits, reducing the risk of falling further into arrears.