Larger energy debt crisis looms as price cap rises by over £200

^{27 May 2026}

Ofgem has today announced an increase to the energy price cap of 13%, taking the figure for a typical household’s annual consumption to £1,862, up from £1,641 in the previous period.

This latest hit to consumers comes as Ofgem recently announced total energy debt increased 18% year-on-year to a total of £4.55 billion. What’s more, StepChange client data shows how energy prices are hitting consumers:

• One in four (24%) StepChange clients in Great Britain spent greater than 20% of their net income on their energy bills in April 2026. ¹
• Average energy arrears per GB StepChange client year to date stand at £2,646.²

Vikki Brownridge, Chief Executive Officer at StepChange Debt Charity, said:

“Whilst an increase in the energy price cap was not unexpected, it doesn’t mean it won’t hit household budgets at a time when people are struggling. The reality is that despite the reduction in usage over the summer months, this is another kick in the teeth for consumers already struggling to make ends meet. The prospect of managing these bills come winter will be a worry for millions.

“As we have seen our own clients’ energy debt almost double since 2021 ³, the reality is that without urgent action this stands to only grow further – a rise on an existing pile of debt. To prevent an energy affordability crisis and further acceleration in energy debt this winter, the government must provide targeted support through a social tariff which builds on the Warm Home Discount Scheme, and work with Ofgem to implement an effective Debt Relief Scheme to support customers with energy debt to repay affordably.”

Notes to Editors

• Ofgem’s latest price cap announcement can be found here.
• Ofgem figures for total energy debt were published on the 31st March.
• Net income in this instance refers to income after accommodation costs.
• ¹ StepChange client data is accurate on the 26th May and is based 16,701 StepChange clients who received full debt advice and are in energy arrears in April 2026.
• ² As above.
• ³ StepChange client energy arrears in 2021 averaged £1,374 (Plugging the Gap, p10). Average energy arrears 2026 YTD stand at £2,646. This totals an increase of 92% over the period.