A modest fall in the UK energy price cap from July is welcome news but StepChange Debt Charity warns it is far from enough to tackle the deep-rooted energy debt crisis gripping millions.
Last week Ofgem confirmed that the average household energy bill will drop by £129.
However, StepChange’s new YouGov polling reveals that 31% of UK adults—an estimated 17 million people—are still worried about paying their energy bills over the next six months.
Ofgem’s latest data shows energy debt and arrears reached a staggering £3.8 billion by the end of 2024.
“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,” said Richard Lane, Chief Client Officer at StepChange. “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.”
The charity welcomes Ofgem’s proposed debt relief scheme but stresses that such measures must be “well-targeted and effectively designed” to address mounting pressures.
Mr Lane added, “Suppliers must also work closely with the regulator to drive up standards in energy debt collection and ensure fair treatment of customers in vulnerable situations.”
StepChange client Sarah shared how unexpected arrears derailed her recovery from an abusive relationship. “Finding letters in the post from our energy provider demanding payment changed all of that,” she said. “Thankfully, I ended up being referred to StepChange.”
Long-term reforms are now crucial to ensure affordability and sustainability says the charity
With fluctuating prices and rising arrears, the energy crisis remains a pressing social issue, demanding bold, coordinated action to protect households and deliver a fairer, greener energy future.
