Household energy debt passes five billion pounds for the first time

The amount households in Britain owe their energy suppliers has passed five billion pounds for the first time, according to figures from the energy regulator Ofgem.

Total domestic energy debt and arrears reached 5.02 billion pounds in the second quarter of 2026, up 4.8 per cent from 4.79 billion pounds in the first three months of the year. The figure is 13 per cent higher than a year earlier.

Bigger debts for each household

The figures cover debts and arrears that have been outstanding for more than 91 days. Over the past three years, the average amount owed has risen substantially.

In the second quarter of 2026, the average arrears for electricity stood at 1,872 pounds, up 9 per cent on a year earlier. For gas, the average was 1,613 pounds, up 8 per cent.

A difficult winter ahead

The milestone comes just days before Ofgem's new price cap takes effect on 1 October, raising the typical household bill by about 4 per cent to 1,723 pounds a year. Higher wholesale prices, driven by conflict in the Middle East, have pushed up the cost of gas in particular.

Debt charities have warned that many households are entering the colder months already behind on their bills, and that rising costs could make it harder to catch up.

What suppliers must do

Ofgem requires energy suppliers to treat customers in payment difficulty fairly. That includes offering affordable repayment plans based on what a customer can pay, and considering the use of prepayment meters only where it is safe and appropriate.

The regulator has also been working on proposals to reduce the overall level of energy debt, including support for some households whose arrears have built up over several years.

Where to get help

People worried about energy bills should speak to their supplier as early as possible. Free and independent advice is available from Citizens Advice and debt charities such as StepChange, and many councils, including Birmingham City Council, provide information on local support with household costs.