The proportion of households in Scotland in energy debt has risen steadily since 2023, reaching 19% in the latest wave of Consumer Scotland's Energy Affordability Tracker, up from 15% the previous year and 8% in October 20231. The findings come from the eighth wave of the survey, with fieldwork carried out between 27 January and 17 February 20261.
Consumer Scotland reports that most energy debt in Scotland is new, under a year old, and does not involve a formal repayment plan or debt recovery action. Of those in energy debt, 36% said they had been put on a prepayment meter because of that debt1. Across Great Britain, total domestic energy debt and arrears reached £4.55bn in Q4 2025, an increase of £700 million in a year, up from £1.09bn in Q1 2018. Arrears now make up the majority of that total, at £3.44bn1.
The tracker also records wider affordability pressure. 38% of Scottish households said they cannot afford to heat their home to a comfortable level, and 16% said they find it difficult to keep up with their energy bills. Satisfaction with energy suppliers stood at 76%1. Consumer Scotland notes that debt and affordability challenges are more prevalent among households receiving means-tested benefits, households where a member has a disability or health condition, low-income households and working-age households1.
On prices, the report states that Ofgem's energy price cap stands at £1,641 for April to June 2026, roughly 12% higher in inflation-adjusted terms than the £1,138 cap for April to June 2021, and that Cornwall Insight forecasts an increase in the next quarter1. It attributes part of the recent fall in the cap, from £1,849 in April 2025 to £1,641 in April 2026, mainly to UK Government decisions to shift some policy costs off energy bills and onto general taxation, which it says left domestic bills £150 lower than they would otherwise have been, effective from April this year1.
"Household energy indebtedness in Scotland has risen to record levels. The proportion of households in energy debt has risen steadily since 2023, rising to 15% last year and is currently 19%."
| Measure | Figure |
|---|---|
| Scottish households in energy debt, October 2023 | 8% |
| Scottish households in energy debt, January/February 2024 | 9% |
| Scottish households in energy debt, previous year | 15% |
| Scottish households in energy debt, winter 2026 | 19% |
| GB domestic energy debt and arrears, Q4 2025 | £4.55bn |
Why it matters for households
Energy debt is not only a problem for the households that hold it. Consumer Scotland states that the costs of debt and arrears are socialised across energy bills, and that the allowances included in the price cap to cover debt-related costs are rising1. That means the total owed by others feeds into the standing charges and unit rates paid by households that are up to date. For a home's energy independence, the practical effect is that a growing share of the bill is set by system-wide costs rather than by that household's own consumption, and the report notes that all households continue to bear the cost1.
The tracker also records that domestic energy consumption fell 16% in 2022 and a further 4.8% in 2023, before rising 3.8% in 2024, while household spending on electricity and gas as a share of total consumer spending returned to pre-crisis levels of 2.4% in 2024-20251. In 2024, an estimated 28.7% of Scottish households, around 732,000, were in fuel poverty, including 14%, around 357,000, in extreme fuel poverty1.
What happens next
Consumer Scotland says the current price cap is fixed until the end of June and that prices are likely to rise from July, with forecasts described as much smaller than the increases seen after Russia's invasion of Ukraine1. It states that the tracker fieldwork took place before the start of the conflict in the Middle East, so the figures do not capture any effect of that conflict on prices, and that any impacts are expected in the next wave1. The report welcomes the UK Government investigating options for additional targeted bill support for winter 2026-2027 should the conflict cause significant energy price increases, and welcomes Ofgem's intention to introduce a Debt Relief Scheme1. It adds that the UK Government published its review of Ofgem in April 2026, describing it as the "first step" in giving Ofgem the power to regulate the heating oil market1. Consumer Scotland says it will report separately on standing charges and consumers' understanding of their bills1.