Household energy debt reached an all time high of £4.15bn, according to official figures based on the first quarter of 2025, with millions of households owing money to their suppliers1. The figure was published alongside research from the University of York which estimates that 12.1 million UK households are struggling with the cost of their energy bills1.
The research found that 43% of UK households spend more than 10% of their income on gas and electricity, and that almost 5 million households spend more than 20%, which the authors describe as deep fuel poverty1. Of those in fuel poverty, 3.2 million are pensioner households, and 964,000 pensioner households are in deep fuel poverty1. Households with children and people who rent their homes are the most likely to be struggling, and the research reports a correlation between lower council tax bands and higher fuel poverty rates1.
The figures allow a comparison between the nations and regions of the UK. Northern Ireland and the West Midlands have the highest rates, followed by Scotland and the North East, while the lowest rates are in Wales, the South West and Eastern England1.
| Nation or region | Households spending more than 10% of income on energy, 2025 | Households spending more than 20% of income on energy, 2025 |
|---|---|---|
| Northern Ireland | 59.3% | 27.9% |
| West Midlands | 51.2% | 22.3% |
| Scotland | 44.3% | 18.1% |
| North East | 44.5% | 17.7% |
| Yorkshire and the Humber | 45.4% | 17.1% |
| London | 31.1% | 16.8% |
| North West and Merseyside | 45.5% | 16.7% |
| East Midlands | 40.9% | 14.3% |
| South East | 36.2% | 14.1% |
| East of England | 39.6% | 13.9% |
| South West | 38.4% | 12.2% |
| Wales | 42.2% | 12.1% |
The End Fuel Poverty Coalition said the figures showed the problem was unresolved, and pointed to the timing of the next price cap announcement.
"Fuel poverty is very much still with us and these figures highlight how vital schemes like the Warm Home Discount are to help those struggling each year."
The coalition added that the average household is still paying 67% more for its energy than in winter 2020/21, and that the North Sea is "in terminal decline" and unable to meet the UK's long-term heating needs1. Jonathan Bradshaw, Emeritus Professor of Social Policy and Social Work at the University of York, said official fuel poverty statistics "don't show the full picture of suffering caused by high energy bills", and that while the data shows a slight reduction in the numbers struggling compared with 2022/23, fuel poverty is still with us1.
Why it matters for households
Energy debt at this level is a measure of how many homes are running a deficit with their supplier rather than paying for what they use. For a household, arrears usually mean a repayment plan added to the standing charge and unit rate, so the cost of each unit of gas or electricity carries both current use and past shortfall. That reduces the room a household has to absorb a price change, and it ties the home to the supplier it already owes.
The research also shows how unevenly the pressure falls. Rates in Northern Ireland, the West Midlands and Scotland are well above those in Wales, the South West and Eastern England1. Households with children and renters are most exposed, which matters for energy independence because renters generally cannot commission insulation, heating controls or solar without a landlord's consent, and the research links lower council tax bands to higher fuel poverty rates1.
The coalition's argument is that the level of debt reflects the cost of the system as well as the price of gas, and that shifting costs between standing charges and unit rates will not solve it1. For a household, that distinction decides whether a fixed standing charge or a higher unit rate is the bigger burden, and it is the subject of the review the coalition refers to. The wider data on how debt and arrears are counted is set out in the household energy debt and arrears statistics, and the underlying releases in the guide to official UK energy statistics publications.
What happens next
The next price cap announcement was due on Wednesday 27 August, with any change taking effect in October and covering the period to the end of 2025, before prices change again from January 20261. The coalition said experts expect a one percent increase, and that even that would lead to further suffering1. Ofgem has launched a review of how energy system costs are allocated1. No outcome or timetable for that review is given in the published material.
Sources1 cited
- Fuel poverty statistics show 12m UK households struggling with energy costs, endfuelpoverty.org.uk