Energy Bills: Households Face Almost £2,000 Energy Debt – Here’s What You Can Do

UK households are falling into higher levels of debt with their energy suppliers due to mounting pressure from the rising cost of living, new figures from Ofgem have revealed. 

The average level of energy debt increased to £1,876 for electricity in the first three months of 2026, according to the UK’s energy regulator. That’s up 29.7% from £1,446 at the same time the previous year.

For gas, the average energy debt rose to £1,623 between January and March this year, up 31% from £1,239 during the same period in 2025.

The figures represent the number of customers who are in arrears without a debt repayment plan and no arrangement to pay.

Energy bill pressure is likely to continue into the second half of 2026.

From July 1 2026 energy price cap set by Ofgem will rise by 13% £1,641 to £1,862 per year for millions of households, the largest increase for summer since the energy crisis in 2022.

This could add an extra £221 to the average energy bill for households using a typical amount of energy.

The energy price cap, which is determined by the regulator Ofgem, sets the maximum amount that suppliers can charge households for each unit of gas and electricity they use

What can you do if you can’t afford your energy bills?

If you’re worried that you can’t afford your energy bills, acting quickly is key. It’s important to contact your energy supplier as soon as possible.

How can you save on energy bills?

If you’re on a standard variable tariff or your fixed rate deal is ending soon these steps can help you beat the price cap rise:

• Check your tariff: if you’re on a standard variable tariff or your fixed-rate tariff is due to end before 1 July, switching onto a fixed-rate tariff can help you cut the cost of your energy.
• Pay by Direct Debit: Paying by Direct Debit is usually cheaper because you don’t have to pay admin costs. Currently, 7 million customers pay by standard credit but could save around £143 per year by switching to a Direct Debit payment.
• Shop around: price comparison can help you compare lots of energy deals quickly and find the best value. Remember to watch out for exit fees which could make your tariff more expensive if you want to switch again before the deal ends.
• Get energy efficient: with winter on the way it’s more important than ever to conserve your energy. Taking steps to insulate your home can help you save on heating costs. While cutting back on energy waste by switching off lights, appliances and technology when they’re not in use can help you save too.
• Apply for support: check if you’re eligible for support from the government such as the Warm Home Discount or your energy supplier, to help you afford the cost of heating and powering your home.
• Create a budget: making a budget can help you identify other areas in your life to save money. A budgeting app can help you automate the process and get started on cutting costs.