Household energy debt and arrears in the UK reached £4.43 billion in the second quarter of 2025, according to Ofgem's latest debt and arrears indicators, reported by the fuel poverty charity National Energy Action on 26 September 2025. The total is up nearly £300 million from £4.15 billion in the previous quarter and up £0.74 billion on the same quarter in 20241.
Of the total, £3.32 billion, or 75 per cent, is arrears, a proportion NEA describes as in line with the previous quarter.
The figures cover the second quarter of 2025 and were published by Ofgem as part of its quarterly debt and arrears indicators. NEA noted that the increase came despite warmer weather, and that the price cap was due to rise again the following week1.
"Despite the warmer weather, households now owe £300 million more, taking the total to almost £4.5 billion. With the price cap rising again next week, too many vulnerable households will find that debt continues to spiral as the colder weather begins to bite. More support can't come soon enough for the people we help."
NEA also set out its understanding of the timetable for Ofgem's work on a debt relief scheme, saying it is likely to follow a phased rollout, with phase one expected to go live from the first quarter of 2026 and phase two from the summer1. The charity said that given the consistent upward trajectory of energy debt and the staggered implementation, it is unlikely there will be any meaningful reduction in the figures in Ofgem's quarterly reporting, adding that the scheme remains worthwhile and necessary but that the current debt landscape underscores the need for more meaningful affordability interventions and support1.
| Measure | Q2 2025 | Previous quarter | Q2 2024 |
|---|---|---|---|
| Total debt and arrears | £4.43bn | £4.15bn | Not reported |
| Arrears | £3.32bn (75%) | Proportionally in line | Not reported |
| Average arrears per dual-fuel household | £1,611 | £1,606 | Not reported |
The Q2 2024 total is not given in the source; NEA reports only that the figure is up £0.74 billion on Q2 2024.
Why it matters for households
Energy debt is money owed to a supplier on top of current bills, and it sits with the household rather than the network. A total of £4.43 billion means a large number of homes are carrying a balance forward into the colder months, when consumption rises. For an individual home, arrears averaging £1,611 per dual-fuel household represent a claim on future income that runs alongside the cost of the energy being used at the time1.
The figures also bear on energy bills and energy independence: a household in arrears has less room to fund measures that would cut its consumption, such as insulation or heating controls, and may face repayment arrangements that fix its outgoings to a supplier. The price cap sets the maximum unit rates and standing charges a supplier can charge on a default tariff, but it does not cap the total bill, which depends on how much energy a home uses.
Where a household cannot pay, support routes exist. The Energy Debt Relief Scheme is the mechanism referred to in the phased rollout above. Charity grants, including those from the British Gas Energy Trust, are a separate route. The Energy Price Guarantee is a closed scheme and does not apply to current bills.
What happens next
Ofgem's debt and arrears indicators are published quarterly, and NEA expects the upward trend to continue in the next release1. On the debt relief scheme, NEA says phase one is expected to go live from the first quarter of 2026 and phase two from the summer1. No further dates have been reported.