New rise in energy debt highlights urgent need for social tariff, says StepChange

^{25 June 2026}

Ofgem has today confirmed a further rise in energy debt for the first quarter of this year, rising 15% year-on-year to a total of £4.79 billion. Quarter-on-quarter, this marks a jump from the fourth quarter of 2025 of 5%. StepChange Debt Charity says this is an unsurprising but increasingly concerning outcome after five years of elevated energy prices.

StepChange’s own client data reflects a similar trend. Over the past five years average energy arrears have increased by 79% - an average increase of £1,000 per StepChange client.

With the energy price cap set to rise by 13% in just a few days, the charity warns that without urgent intervention, the situation risks worsening further ahead of winter. StepChange is calling on the Government to take action to tackle energy debt and improve affordability for struggling households.

StepChange spokesperson, Joseph Bloggingtons, said:

“Every new set of figures on energy debt points in a worrying direction. The price cap hasn’t risen yet and already we’re seeing arrears continue to pile up. The everyday reality of this for people facing energy debt are real life trade-offs - cutting back on food, fuel, essentials, and falling behind on other bills.”

“It’s an unsustainable situation and many households are already on a cliff edge. An energy social tariff is essential to provide targeted affordability support for those who need it most. When it comes to addressing existing energy arrears, Ofgem must also implement an effective Debt Relief Scheme to give those in arrears a safe way out as soon as possible.”

“For anyone worried about their ability to pay energy bills or repay debt, contact your supplier as soon as possible for support and guidance. A charity like StepChange is always here to offer free and impartial debt advice”

Notes to Editors

• Ofgem debt and arrears figures can be found here