Urgent action still needed to address staggering energy debt, despite fall in the price cap says StepChange Debt Charity
23 May 2025
Ofgem has this morning confirmed that the typical cost of energy bills for households will fall by an average £129 from July.
StepChange Debt Charity says a small reduction in average energy prices is positive but doesn't negate the need for more targeted support for those facing financial difficulty.
New YouGov polling commissioned by the charity this month reveals three in ten (31%) UK adults, equivalent of around 17 million people, are worried about paying their energy bills over the next six months.
Meanwhile, Ofgem's latest figures show energy debt and arrears in the UK reached over £3.8 billion in the fourth quarter of 2024.
Reacting to the change in the price cap today, Richard Lane, Chief Client Officer at StepChange Debt Charity, said:
"This is the first fall in the energy price cap we've seen for a year, but it's fair to say it'll have a minimal impact, both on the households already struggling to meet these costs and for those already deep in the red with their energy bills - many of whom have been hit hard by other bill rises in April. Our data shows energy arrears continue to rise among our clients seeking debt advice, with the latest figures showing average arrears increased by 15% year on year in April, now standing at £2,669 per client.
"Urgent steps to eliminate historic debt built up over the energy crisis are needed, and we've welcomed Ofgem's plans for a debt relief scheme. Such a move must be well-targeted and effectively designed, to properly address the substantial pressures consumers with energy debt are facing. It's also essential that suppliers work closely with the regulator to drive up standards in energy debt collection and ensure fair treatment of customers in vulnerable situations.
"Ultimately, given the ongoing fluctuations in energy prices, long-term reforms are crucial to ensure affordability and provide lasting protection for households facing problem debt and fuel poverty."
StepChange client Sarah sought help from the charity when she fell into energy arrears after leaving an abusive relationship. She is concerned that consistently high and fluctuating bills will impact her ability to become debt-free in the near future. Sarah said:
"My energy debts happened due to my housemate not keeping up with our joint commitment to pay the bills in full each month. I had just left an abusive relationship and was looking forward to starting the next stage of my life, but finding letters in the post from our energy provider demanding payment changed all of that. Thankfully, I ended up being referred to StepChange for advice, and I'm now on a sustainable debt repayment plan with them. Moving back in with my mum and splitting the energy bills with her will help me to stabilise my finances and pay off my debt, as long as they are affordable."
Notes to Editors
- All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,235 adults. Fieldwork was undertaken between 7th - 8th May 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).