Millions of households will struggle to meet energy costs despite price cap fall

^{25 February 2026}

StepChange Debt Charity has welcomed the reduction in Ofgem’s energy price cap to £1,641 per year but is warning that high energy bills and historic energy debt topping £4.4 billion together mean that millions of households will still struggle to comfortably meet their energy costs.

Client data from the charity illustrates the scale of the energy affordability crisis. While the headline energy price cap has fallen by just over 10% since December 2023, the reality for households in debt tells a starkly different story, as average energy arrears among StepChange clients rose by 20% over a similar period, climbing from £1,974 to £2,445 between December 2023 and December 2025.

As such, the charity is urging the Government to implement an energy social tariff building on the Warm Home Discount Scheme and for Ofgem to implement its planned Debt Relief Scheme urgently.

Peter Tutton Director of Policy, Public Affairs, and Research at StepChange, said:

“Whilst a reduction in the price cap may give people pause for a welcome sigh of relief, the reality is that energy debt and energy bills are still placing significant pressures on households across Britain. People spend huge proportions of their income heating their home and keeping the lights on - as our advisers hear every day that people are struggling to cope with the cost of energy.

“Under the current cap, average bills remain around £500 per year higher than households could expect just a few years ago, and as such we want the Government to build on its recent extension of the Warm Home Discount scheme with an energy social tariff to close the affordability gap for struggling households.

“The energy price cap is the maximum amount energy suppliers can charge you for each unit of energy and standing charge – but it does not mean that your overall cost is strictly capped at £1,641. So, it’s important to keep an eye on your individual usage, as depending on your circumstances, some will pay more than this. If you’re struggling with your energy costs or debt, reach out to your energy supplier to see how they might be able to support you. Free debt advice providers like StepChange are always here to help if you find yourself struggling.”

Notes to Editors

• StepChange advises over 160,000 people per year through full debt advice.
• Information on today’s Ofgem’s price cap can be found here: Ofgem website,
• Information on Ofgem’s energy debt estimates can be found here: Ofgem website
• The price cap comparison period relates to the October–December 2023, set at £1,834, through to today’s rate of £1,641.
• StepChange data compares clients living in Britain, who have completed full debt advice, in December 2023 (n=11,450) and December 2025 (n=11,398).