UK energy debt hits record £6bn as bills set to rise again
Energy debt in Britain has reached a record £6bn, expected to hit £7bn by year end, with the price cap forecast to rise again in October.
The Full Story
A plain summary built from the channels that reported this story.
Energy debt in the UK has reached a record £6 billion, according to Energy UK, which represents suppliers. The figure covers unpaid household bills in England, Scotland and Wales, and is expected to grow to £7 billion by the end of the year. The surge follows the energy crisis triggered by Russia's invasion of Ukraine in February 2022, which sent bills soaring and left many households unable to keep up with payments.
For a household in debt without a repayment plan, the average amount owed is now around £3,500. That cost is also being spread across all bill payers, adding roughly £50 to everyone's annual energy bill. Suppliers say high bills are likely to continue because of network upgrades and ongoing pressures on wholesale gas prices.
Meanwhile, millions of households are expected to see another increase in their energy bills this winter. The regulator is due to confirm the exact amount next week, but the current forecast is for the price cap to rise by 4% in October. That would take a typical household's annual bill to more than £1,700, the highest level in three years.
In response, campaigners and suppliers are calling for more government support. Energy UK has proposed a discounted tariff for those most in need, funded through taxation. The government says it has already cut VAT on electricity bills, but acknowledges there is more to do. Pressure is expected to mount on ministers when the official price cap figures are released.
In the meantime, households are being urged to check if they qualify for the Warm Home Discount, which knocks £150 off electricity bills. The scheme is available to people on certain benefits, including Universal Credit and Pension Credit, in England and Wales. Payments are automatic between October and March, but the person receiving the qualifying benefit must be named on the electricity bill. Suppliers check their records on Sunday, so eligible customers who are not named on the bill need to contact their provider before then. The scheme operates differently in Scotland and Northern Ireland, with separate arrangements in place.
Energy experts also suggest comparing tariffs and considering fixed deals, as locking in rates now could protect against further price cap rises. With the cap expected to stay high, fixing may offer savings for the duration of the contract.
On screen
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Key Claims
Claims reported during this story's coverage, mapped by channel. Ordered by how many channels carried each claim.
| Claim | BBC One |
|---|---|
| Energy debt is expected to rise to £7 billion by the end of the year. | |
| Energy debt reached a record £6 billion. | |
| Energy price cap is predicted to rise 4% from October, reaching the highest level in three years. | |
| Suppliers have until Sunday to check records for the warm home discount. | |
| Warm home discount provides £150 off a typical electricity bill. |
Channel Perspectives
What each channel focused on, with key quotes.
The channel combined practical consumer advice with analysis of the wider debt crisis. It highlighted the Warm Home Discount deadline and the impact of rising bills on households, while also reporting on the record debt levels and the political pressure on the government to intervene. The tone was informative and service-oriented, with a clear focus on what viewers should do next.
- “It's really worth, if you've not sort of engaged with energy in a while or sort of switched energy or spoken to a supplier, run an energy comparison and see what tariff you're on because it's very likely you are on a standard variable tariff and your bills will go up in October.”
- “The amount of unpaid money households in England, Scotland and Wales owe to energy suppliers has reached a record £6 billion.”
- “The government says, well, it is cutting VAT from electricity bills, but says that's a start, there's more to do.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.