British household energy debt has more than tripled in the past decade as cost-of-living pressures force families into arrears, according to new research. The Resolution Foundation’s Money On My Mind report showed the number of electricity customers behind on bills without a repayment plan has soared from 300,000 in 2012 to more than one million by the end of 2024.
Gas arrears also tripled over the same period, rising from 300,000 to 900,000. Simon Trevethick, head of communications at debt advice charity StepChange, said: “The sheer weight of everyday costs is pushing households to the brink.” The latest figures reflect the pressure. The average debt on electricity bills has risen from £500 in 2012 to £1,600 in 2024, while gas arrears grew from £500 to nearly £1,400.
These debts are most concentrated among the poorest households, with almost one in five families in the bottom fifth of the income distribution behind on at least one priority bill.
The rise in arrears has been fuelled by surging energy prices, with families paying around 50% more per unit of gas since the energy crisis, and by the combination of shrinking council tax support and rising local bills.
Council tax arrears in England have jumped nearly 50% since the pandemic, from £4.6 billion in 2019/20 to £6.7 billion in 2024/25.
Despite signs of improved financial behaviour among some households, including increased savings and falling credit card debt, the poorer half of the UK’s 13 million working-age families still struggle to build a financial buffer. Two in five have less than £1,000 in available savings, the report found.
Felicia Odamtten, economist at the Resolution Foundation, said: “Families’ financial resilience has been tested in recent decades by a series of financial shocks along with stagnating incomes.
“While families have impressively still managed to reduce their credit card debt and save a bit more, new financial worries have emerged with arrears on priority bills skyrocketing.
“Tackling these financial problems will require additional help with priority bills, such as improved council tax support, and a social tariff on energy bills.”
While households can take small steps such as switching energy tariffs, cutting usage where safe, or seeking early advice, Mr Threvethick warned these are “sticking plaster measures for a much deeper wound.”
He called for a debt relief scheme for energy arrears, reform of council tax rules, including an end to imprisonment, and urgent Government action to strengthen financial resilience.
