Energy debt and arrears climbs to £4.43 billion

Ofgem’s latest debt figures are out – with energy debt and arrears totalling £4.43 billion in Q2 in 2025. This is up nearly £300mn from £4.15bn in the previous quarter and up by £0.74 billion on Q2 in 2024.

• £3.32 billion of this (75%) is arrears, proportionally in line with the previous quarter
• Arrears currently average £1,611 per dual-fuel household – up slightly from £1,606 in the previous quarter, and more than double pre-crisis levels (Q221: £756)

Despite the warmer weather, households now owe £300 million more, taking the total to almost £4.5 billion. With the price cap rising again next week, too many vulnerable households will find that debt continues to spiral as the colder weather begins to bite. More support can’t come soon enough for the people we help.

We now understand that Ofgem’s work on a debt relief scheme is likely to follow a phased rollout, with phase one expected to go live from Q1 2026 and phase two from the summer.

Given the consistent upward trajectory of energy debt and the staggered debt relief implementation, it’s unlikely we’ll see any meaningful reduction in the figures in Ofgem’s quarterly reporting. It remains a worthwhile and necessary scheme, but the current debt landscape underscores the need for more meaningful affordability interventions and support.