Households still burdened by historic energy debt as bills increase again 

Edward Ware, Head of Influencing at Money Advice Trust has commented on tomorrow’s rise in the Ofgem price cap and Cornwall Insight’s predictions for another steep rise in January. 

Posted September 30, 2026

Edward Ware, Head of Influencing at Money Advice Trust, says:

“These will be extremely worrying times for households who have been forced to absorb multiple hits on their budgets in recent years. As bills rise and temperatures fall, many people will feel they have no choice but to ration the energy they use, from limiting how often they put the heating on to cutting back on hot meals and hot showers to try and keep bills affordable.  

“We recognise there have been welcome measures to reduce bills, but for households already stretched to breaking point, another increase in energy costs without additional support in the upcoming Budget could be the difference between staying on top of essential bills and falling into debt. 

“But as well as bills rising again, people are still dealing with enormous levels of debt built up in previous crises through no fault of their own. With some projections suggesting consumer energy debt is set to hit £7 billion by the end of the year, it’s clear this is an issue that must be tackled. Ofgem’s Debt Relief Scheme would allow energy suppliers to write off debts built up during previous shocks and give households some additional breathing room and lift the burden and worry of those debts. The consultation has already taken place, it now needs the urgency and commitment of government to bring it into reality.” 

If you’re worried seek advice 

“If you're worried about how you'll cope with rising bills, don't wait until you've missed payments or built up large debts before seeking help. Free debt advice is available for anyone who is concerned about their finances, not just those already in crisis. 

“Every day, our advisers speak to people who feel overwhelmed by rising costs and are unsure where to turn. National Debtline can help you understand your options, create a realistic budget, check you're receiving all the support you're entitled to and help you deal with creditors and energy suppliers. 

“Seeking advice early can make a real difference. The sooner someone gets support, the more options are likely to be available to them and the easier it can be to prevent temporary financial pressure developing into serious problem debt.” 

National Debtline Figures 

  • The amount of people contacting National Debtline with energy debt has risen by 12.1% (or 2,006 people) in the last year, from 16,530 to 18.536. 
  • Energy debt is the second most common debt type National Debtline advisers hear about behind credit cards 
  • Over a third (38%) of people who contact National Debtline have energy debt 
  • On average, people who contact National Debtline with energy debt owe £3,283. This is up 37% fromfrom£2,401 last year. 

Ofgem Debt Relief Scheme   

Ofgem’s proposed Debt Relief Scheme is designed to tackle the build-up of unpaid energy bills from the energy crisis by allowing suppliers to write off a portion of customer debt, with costs spread across the wider market. The aim is to support households struggling with arrears, reduce debt pressures on suppliers and create a more sustainable system for managing energy debt going forward.  The announcement of the scheme followed our Help To Repay campaign, backed by 14 charities and other organisations.  

Phase 1 which will support people receiving means-tested benefits has been consulted on. The regulator has yet to confirm firm timelines for when this will be implemented. Phase 2 which would support a wider group of customers has yet to be consulted on.