National Energy Action (NEA), the fuel poverty charity working across England, Wales and Northern Ireland, published a paper on energy debt on 30 June 2026, the day before the price cap rose. The paper, Clearing the Decks: Tackling Energy Debt to Lower Bills, sets out how record levels of energy debt affect households in arrears and add to bills for everyone1.
The price cap rises by 13 per cent from 1 July 2026, taking a typical household bill to £1,862 a year1. NEA's analysis puts bad debt and recovery costs at around £50 to £70 a year on household bills through the price cap1. Total energy debt has reached a new record of £4.79 billion, according to Ofgem statistics cited by the charity1. NEA defines a typical domestic consumer as a household using 2,700 kWh of electricity and 11,500 kWh of gas a year1.
The charity says the problem is sustained unaffordability rather than consumer choice or behaviour, with bills consistently outstripping incomes for several years1. It warns that without action the response will shift towards tighter debt collection, including greater use of forced prepayment meters, which it says risks households losing access to energy altogether1. NEA also links higher bills to summer heatwaves, saying many homes cannot cope with high temperatures and that cooling and refrigeration add to rising bills1.
"We need urgent action to clear this debt and stop costs being baked into the system. The right response is to scale debt relief. As our new paper, Clearing the Decks, sets out, that means enabling and expanding Ofgem's Debt Relief Scheme with additional funding so more of this debt can be cleared, reducing harm and lowering costs across bills."
The paper's call centres on expanding Ofgem's Energy Debt Relief Scheme with additional funding1. NEA's remit covers England, Wales and Northern Ireland; its notes do not set out separate figures for Northern Ireland's separate market or for Scotland1.
| Item | Figure |
|---|---|
| Price cap rise from 1 July 2026 | 13 per cent |
| Typical household bill after rise | £1,862 a year |
| Bad debt and recovery costs on bills | £50 to £70 a year |
| Total energy debt (Ofgem) | £4.79 billion |
Why it matters for households
Energy debt is not only a problem for the households that owe it. NEA's figures indicate that the cost of unpaid bills and recovering them is spread across the price cap, so every household on a standard variable tariff contributes roughly £50 to £70 a year towards it1. That links the debt position of others directly to a home's own energy bills and energy independence, because the recovery costs sit inside the unit rates and standing charges that make up the cap rather than in a separate charge1.
For households already in arrears, NEA describes debt shaping daily routines, worsening health and reducing the ability to cope or recover1. It also warns that a shift towards forced prepayment meters could leave some homes without energy at all1. The charity frames the issue as a public health matter, saying inefficient homes take lives in winter and increasingly threaten the most vulnerable in summer1. Households seeking help with arrears can approach the British Gas Energy Trust or the national support routes for England, Scotland, Wales and Northern Ireland.
What happens next
The 13 per cent price cap rise takes effect on 1 July 20261. NEA has called for Ofgem's Debt Relief Scheme to be enabled and expanded with additional funding, but the paper does not set out a timetable, and no government or Ofgem response to the call has been reported1.