Ofgem published its refreshed Consumer Vulnerability Strategy (CVS) in April 2025, setting out four themes and a cross-cutting theme for protecting consumers in vulnerable situations1. The strategy covers improving identification and smarter use of data; supporting consumers who are struggling to pay; improving customer service for vulnerable groups; and encouraging positive and inclusive innovation, supported by a cross-cutting theme of working with others1.
A first progress report, published on 21 July 2026, focuses mainly on the first two themes and on supplier governance, which Ofgem said reflected the current debt and affordability context1. Ofgem reported that identification of consumers in vulnerable situations is improving but is not yet consistent across the sector, that support for those struggling to pay is strengthening but delivery remains uneven, and that governance arrangements are more established with some good practice to build on1.
"This first Progress Report focuses mainly on the first two themes and considers supplier governance, reflecting the current debt and affordability context"
On debt, Ofgem reported that at the end of 2025 around 58% of consumers who were behind on their bills were in arrears without a repayment plan1. It also reported that the average number of weeks to repay debts was lower in 2025 (107 for electricity and 102 for gas) than in 2020 (127 and 121 respectively), while the average debt balance rose from around £7 to £9 per week in 2020 to around £12 to £14 per week in 20251. Average debt per customer fell from around £8 for both electricity and gas in 2022 to around £5 in 2025, but the average time to clear debt through a repayment plan rose from 158 weeks at the end of 2020 to 269 weeks for electricity, and from 130 weeks to 276 weeks for gas in 20251.
| Measure | Earlier figure | Later figure |
|---|---|---|
| Average debt balance per week | around £7 to £9 (2020) | around £12 to £14 (2025) |
| Average debt per customer | around £8 (2022) | around £5 (2025) |
| Weeks to repay, electricity | 127 (2020) | 107 (2025) |
| Weeks to repay, gas | 121 (2020) | 102 (2025) |
| Weeks to clear debt via repayment plan, electricity | 158 (end 2020) | 269 (2025) |
| Weeks to clear debt via repayment plan, gas | 130 (end 2020) | 276 (2025) |
The report also lists work Ofgem has carried out, including a call for input on the Cost Allocation Review in July 2025, guidance on the ethical use of AI in the energy sector published in May 2025 and updated in May 2026, 24/7 emergency contact requirements introduced from August 2025, a consultation on lower standing charge tariffs in September 2025 with a one-year pilot launched in April 2026, and a consultation on the proposed Debt Outcome in June 20261. Ofgem said it published a letter to suppliers and an accompanying guide for energy suppliers and debt advice providers in January 2026, and that supplier practices on Additional Support Credit had changed since an expectations letter on the original policy intent in August 20251.
Why it matters for households
The strategy and progress report concern how suppliers identify and support households in vulnerable situations, which affects whether help arrives before arrears build up. Ofgem's finding that around 58% of consumers behind on bills had no repayment plan at the end of 2025 indicates that a large share of indebted households were not on a structured route to clearing what they owe1. The report also flags billing accuracy and meter access, particularly for those with traditional meters, noting that inaccurate bills, delayed bills or missing meter readings can make it harder for consumers to understand what they owe and to agree support1.
For a household's energy independence, the practical points are the terms on which debt is managed and the accuracy of the bill it is managed against. Ofgem's own figures show average debt per customer falling while repayment periods lengthen, which points to smaller balances taking longer to clear1. The report states that affordability pressures sit beyond suppliers' direct control1.
What happens next
Ofgem said the next cycle of focus sessions is planned for early 2027, to align with annual Social Obligations Reporting data1. It said it will continue to work with government on efforts to enable data sharing and more joined-up approaches to identifying vulnerability and targeted affordability support1. Ofgem also said it will review the Priority Services Register, take forward measures to reduce the amount of debt consumers are building up, and drive improvements in billing standards through compliance and potentially rule changes1.
Sources1 cited
- Coumer Vulnerability Strategy: Progress Report, ofgem.gov.uk