Domestic energy debt and arrears in Great Britain reached £4.55bn in the fourth quarter of 2025, an increase of £700 million in a year, according to Ofgem data cited in a Consumer Scotland report published on 27 May 20261. The same report records that the total has risen from £1.09bn in the first quarter of 2018, a four-fold increase, driven mainly by arrears, which have grown more than sixfold and now make up the majority of the total at £3.44bn1.
The figures come from the eighth wave of Consumer Scotland's Energy Affordability Tracker, an online survey of adults aged 16 and over in Scotland carried out between 27 January and 17 February 20261. Consumer Scotland states that the fieldwork took place before the start of the conflict in the Middle East, so the findings do not capture any effect of that conflict on energy prices1.
In Scotland, the proportion of households in energy debt has risen to 19%, from 15% last year, and from 8% in October 2023 and 9% in January and February 20241. Most of that debt is under a year old and does not involve a formal repayment plan or recovery action. Of those in energy debt, 36% report having been put on a prepayment meter because of it1. The report also finds that 38% of Scottish households cannot afford to heat their home to a comfortable level and 16% find it difficult to keep up with their energy bills1.
On prices, Consumer Scotland gives the Ofgem price cap as £1,641 for April to June 2026, down from £1,849 in April 2025, and says it is roughly 12% higher in inflation-adjusted terms than the £1,138 cap for April to June 20211. It attributes much of the recent fall to the UK Government moving some policy costs off energy bills and onto general taxation, including taking 75% of the domestic costs of the Renewables Obligation into taxation and removing the Energy Company Obligation levy from bills, changes it says came into effect in April this year and leave domestic bills £150 lower than they would otherwise have been1. Cornwall Insight forecasts a further cap increase for July to September 20261.
"The legacy of these high prices is a significant growth in energy debt and arrears for GB households, reaching £4.55bn in Q4 2025, an increase of £700 million in a year."
| Measure | Figure |
|---|---|
| GB domestic debt and arrears, Q4 2025 | £4.55bn |
| Annual increase | £700m |
| Of which arrears | £3.44bn |
| Scottish households in energy debt | 19% |
| Scottish households unable to heat home comfortably | 38% |
Why it matters for households
Debt and arrears are socialised across energy bills, so the cost of the total is carried by all households through the allowances included in the price cap to cover debt-related costs, which Consumer Scotland says are rising1. That links the arrears total directly to what every household pays, not only those behind on payments. For a home's energy independence, the practical picture in the report is one of reduced consumption alongside higher spending: domestic energy use fell 16% in 2022 and 4.8% in 2023, then rose 3.8% in 2024, while household spending on electricity and gas as a share of total consumer spending went from 2.5% in 2021-2022 to 3.5% in 2022-2023, easing to 2.9% in 2023-2024 and returning to 2.4% in 2024-20251. The report also notes that 28.7% of Scottish households, around 732,000, were estimated to be in fuel poverty in 2024, including 14%, around 357,000, in extreme fuel poverty1. Satisfaction with energy suppliers was high, at 76% of respondents1.
What happens next
Consumer Scotland says it welcomes the UK Government investigating options for additional targeted bill support for winter 2026-2027 should the conflict in the Middle East cause significant energy price increases1. It also welcomes Ofgem's intention to introduce a Debt Relief Scheme, and states that further action is likely to be needed if the total amount of debt is not to increase1. The report notes 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 monitor the price cap and wholesale costs, with a particular focus on heating oil consumers, and expects any effects of the conflict to appear in its next survey wave1. It adds that a separate forthcoming report will cover consumers' understanding of their energy bills and the role of standing charges1.