Energy debt in the UK just hit a record high
Energy debt is not a niche problem any more. Ofgem’s own figures put the total owed to suppliers at close to £4.8 billion, up around 15% on the same point last year. Industry body Energy UK puts the wider figure even higher once older arrears are counted.
None of that is your fault for opening a letter you didn’t want to open. But it does mean two things worth knowing today: unpaid energy debt gets shared across everyone’s bills (Ofgem estimates it adds roughly £50 a year to the average account), and suppliers have more formal routes for energy debt help than most people ever ask about.
This guide is about what to actually do if you’re behind, not another lecture about budgeting. Doing nothing is the one option that reliably makes energy debt worse.
How much energy debt is out there right now?
Ofgem’s most recent debt and arrears data shows the total owed to suppliers has been climbing for several quarters in a row, not just spiking once. Colder winters, the wholesale price rises tied to the Middle East conflict, and a cost of living squeeze that never quite let go are all named as drivers.
The pattern matters more than the headline number. Energy debt has been rising steadily rather than as a one-off shock, which is exactly why Ofgem has been pushing suppliers to offer more structured repayment support rather than leaving people to fall further behind.
Wholesale gas prices, pushed up again this year by the conflict in the Middle East, are a big part of the story. When the wholesale price jumps, the price cap follows a few months later, and the households already closest to the edge tend to fall into energy debt first.
What should I do if I’m falling behind on my energy bill?
Contact your supplier before they contact you. Every major supplier is required to offer a repayment plan you can actually afford, based on your income and outgoings, not a generic amount they’d prefer.
A few things worth doing in the first call:
- Ask directly for a “payment plan review” rather than just paying what they first suggest.
- Mention if you’re on a low income, a prepayment meter, or receiving certain benefits. It can unlock a lower repayment rate or access to a hardship fund.
- Ask whether you qualify for your supplier’s own hardship grant. Most of the larger suppliers run one, and eligibility is broader than people expect.
If a plan already agreed is too high, ask for it to be reviewed again. Suppliers are expected to renegotiate rather than send you straight to a prepayment meter or debt collectors.
Forced prepayment meter installations for energy debt are also far more tightly restricted than they used to be. A supplier generally has to show it has tried other options first, including a home visit and a proper assessment of your circumstances, before a warrant is even considered.
Can my supplier cut me off for energy debt?
Disconnection for energy debt is rare and heavily restricted, especially over winter. Suppliers must consider your circumstances first, including whether anyone in the household is elderly, disabled, or has a health condition that depends on electricity or heating.
If that applies to you or someone you live with, ask to be added to the Priority Services Register. It does not clear energy debt, but it does change how a supplier is allowed to treat you while you sort it out, including extra protection against disconnection.
Where can I get energy debt help beyond your supplier?
Your supplier is the first call, but it doesn’t have to be the last stop. Here’s where else energy debt help actually comes from, and none of it costs you anything:
- The Energy Debt Relief Scheme, a government-backed scheme that writes off a portion of qualifying arrears, rather than just deferring them.
- Independent debt charities such as StepChange and National Debtline, who can negotiate with suppliers on your behalf for free.
- The Ofgem-backed Energy Ombudsman, if your supplier has already failed to resolve a debt dispute after eight weeks.
None of them require you to already be in crisis before you ask, either. The earlier you get energy debt help, the more options are usually still on the table.
StepChange in particular is worth a mention on its own: its free online debt tool looks at your whole financial picture, not just the energy account, which matters if a rising bill is one symptom of a wider squeeze rather than the only one.
Key takeaways
- UK energy debt is at a reported record high, driven by wholesale prices and repeated winters of high bills.
- Suppliers must offer an affordable repayment plan. Ask them to review it if the first offer feels too high.
- The Priority Services Register adds protection if you or someone at home is vulnerable.
- Free, independent energy debt help is available from StepChange, National Debtline and the Energy Ombudsman.
- Acting early keeps more options open than waiting for a final demand.
Frequently asked questions about energy debt help
- Will asking for energy debt help affect my credit score?
- Agreeing a repayment plan with your existing supplier does not usually affect your credit score. It is only formal defaults or missed agreed payments that tend to show up on your record.
- Can I switch supplier if I’m in energy debt?
- You can usually still switch if your debt is under a set threshold and you agree to repay it, either to the old supplier directly or as part of the new one’s terms. Above that threshold, most suppliers will ask you to clear or reduce the balance first.
- Is a hardship grant the same as the Energy Debt Relief Scheme?
- No. A hardship grant is run by your own supplier and usually covers your existing arrears with that company. The Energy Debt Relief Scheme is a separate, government-backed scheme with its own eligibility rules.
- What happens if I ignore energy debt letters completely?
- Ignoring them tends to be the one thing that narrows your options. Suppliers are far more flexible when you engage early than once a case has moved to a debt collection agency.
- Does the Priority Services Register cost anything?
- No. It’s a free register your supplier keeps to flag if you need extra support, and it never asks for a fee.
If your current tariff is part of why the numbers don’t add up, it’s worth checking whether a fixed deal would leave more breathing room once any existing energy debt is under control. Roo will do the boring bit of comparing suppliers, so the only decision left is whether it’s worth the switch.
None of this fixes energy debt overnight. But a plan you can actually afford, agreed early, beats a bigger bill and a harder conversation later.
