Average energy arrears among people seeking debt advice from StepChange Scotland have risen sharply, increasing by 42% in the past year.
Average arrears jumped from £2,464 in the first half of 2024 to £3,499 in the first half of 2025, raising concerns about households’ ability to heat their homes as colder months approach.
Council Tax arrears have also climbed, with clients now owing an average of £2,385 – a 13% increase on the previous year.
The findings point to a broader financial strain on households. More clients are relying on consumer credit to cover basic living costs, with the proportion citing this as their main reason for debt rising from 5% to 7% in the past year.
Credit card debt remains the most common debt type, reported by two thirds (66%) of clients, up from 61% in 2024.
StepChange Scotland has called for urgent action from both the UK and Scottish governments to support households struggling with arrears.
The charity has welcomed Ofgem’s proposed debt relief scheme and reiterated its long-standing concerns about Council Tax debt collection, urging reforms to prevent heavy-handed enforcement.
Vikki Brownridge, chief executive of StepChange Scotland, said: “While we may not be thinking about our energy bills quite as much during the summer months, it’s alarming to see how much energy debt has built up among our clients in Scotland this year, alongside council tax arrears.
“These kinds of priority debts can put a severe financial strain on households, as they grapple with repaying debt whilst trying to keep up with essential expenses.
“After years of cost of living pressures, easing the burden on struggling households requires intervention from government.
“We’d like to see urgent action to address historic energy debt, alongside a more compassionate approach to council tax debt collection.
“Too often local authorities quickly jump to heavy handed enforcement action, including use of Sherriff Officers if people fall behind with bills.
“Our research shows it is often the most vulnerable households facing council tax arrears.
“If you find yourself falling behind with household bills, or worried about managing debt repayments, don’t hesitate to reach out to a charity like StepChange Scotland for free, impartial and non-judgemental debt advice and debt solutions.
“It’s also important to let your energy provider know as soon as possible if you’re having difficulty keeping up with your bills – there may be energy grants or tailored support available to help.”
