Energy debt pressures set to deepen as Ofgem raises price cap by 4%
The average household energy bill will rise by 4% from October as energy debt reaches record levels, prompting calls for greater support for financially vulnerable households.
The average household energy bill will rise to £1,723 from 1st October to 31st December following the latest Ofgem price cap announcement, representing a 4% increase on July’s level.
StepChange warned that the increase could deepen existing energy debt pressures as households move into the colder months. The average amount of energy arrears held by a StepChange client in Britain reached £2,673 during the first half of 2026, more than £200 higher than in 2025.
Figures from Energy UK show total energy debt has reached a record £6bn and remains on course to reach £7bn by the end of 2026.
Polling by YouGov found that 29% of adults in Great Britain were worried about their ability to pay energy bills over the next 6 months, while 45% of those paying bills had taken action to reduce their energy usage during the previous 3 months.
StepChange has called for a social tariff to reduce bills for financially vulnerable households and a debt write-off scheme to address historic arrears built up during the period of higher energy prices.
Emily Whitford, senior public policy advocate and author of Plugging the gap, said: “Whilst expected with ongoing global instability, any rise in energy bills heading into autumn translates into household budgets being hit at potentially the worst time, as typical trends mean gas and electricity usage will likely increase as people start to heat their homes more frequently.
“This increase comes on top of the previous 13% hike in energy bills households saw in July. It’s for that reason the Government must prioritise a social tariff to plug the gap in energy affordability.
“For anyone struggling with their energy bills – talk to someone and reach out for help. Your energy supplier may have schemes to support you, and a debt advice charity like StepChange can support you with full budgeting, specialist assistance, and ultimately chart a course back to financial health.”
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