Ofgem published its first Consumer Vulnerability Strategy progress report on 21 July 2026, assessing how suppliers are delivering the commitments set out in the strategy it refreshed in April 20251. The report focuses mainly on the first two of the strategy's four themes, identification of consumers in vulnerable situations and support for those struggling to pay, and on supplier governance1.
The report states 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 records that average weekly arrears repayment amounts rose from around £7 to £9 per week in 2020 to around £12 to £14 per week in 2025, while 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)1. Average debt levels fell from around £8 for both electricity and gas in 2022 to around £5 in 2025, but the report also notes an increase in the time taken to clear debt for some customers, from 158 weeks at the end of 2020 to 269 weeks for electricity, and from 130 weeks to 276 weeks for gas in 20251.
The report sets out Ofgem's assessment of its own progress across the strategy's themes, including a call for input on the Cost Allocation Review published in July 2025, a consultation on lower standing charge tariffs in September 2025 followed by a one-year pilot launched in April 2026, and a consultation on the proposed Debt Outcome in June 20261. It also records guidance on the ethical use of AI in the energy sector published in May 2025 and updated in May 2026, and 24/7 emergency contact requirements introduced from August 20251.
On supplier practice, the report says Ofgem 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 changed after an expectations letter on the original policy intent in August 20251. It states that the next cycle of focus sessions is planned for early 2027, to align with annual Social Obligations Reporting data1.
"This first Progress Report focuses mainly on the first two themes and considers supplier governance, reflecting the current debt and affordability context"
Why it matters for households
The report's central finding is that support for households in debt is strengthening in places but not delivered consistently, and that too many customers in debt are not being brought into structured repayment arrangements1. For a household behind on its bills, that distinction matters: a repayment plan that reflects ability to pay is the mechanism by which arrears are cleared without the debt position worsening, and the report states that without such support these customers are unlikely to see their position improve1.
The report also highlights 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, engage with their supplier or agree support that reflects their circumstances1. Identification of vulnerability is described as improving but not yet consistent, with the Priority Services Register remaining important but not a sufficient measure of success1. Ofgem's regulation and policy work covers these areas, and its role is set out in what the energy regulator does and what it covers. Households disputing a supplier's handling of their account can use the routes described in energy complaints and redress.
What happens next
Ofgem states 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. The next cycle of vulnerability focus sessions is planned for early 2027, to align with annual Social Obligations Reporting data1.
Sources1 cited
- Coumer Vulnerability Strategy: Progress Report, ofgem.gov.uk