A stark reality is confronting British households, as recent data reveals an alarming trend in the ability to pay energy bills.
Energy bills: record numbers of households default
According to figures published by the Office for National Statistics, over 2.7% of direct debit payments for gas and electricity defaulted in April 2025. This statistic marks the highest default rate on energy bills since records began, and is triple the rate of just 0.9% before the onset of the global energy crisis.
Coupled with this, missed payments on loans have surged to nearly 3.9%, a worrying escalation from 2.1% during the peak of the Covid-19 pandemic when many households experienced an unexpected influx of savings.
The trends indicate a deepening financial crisis for many households, with consumer campaigners sounding the alarm on the increasing energy debt that now stands at a staggering £3.8 billion—a figure that has ballooned by £2 billion since the start of 2022.
Gillian Cooper, a director at Citizens Advice, highlighted that nearly seven million households are now in debt to their energy suppliers. The situation calls for urgent government action, yet the response has been noticeably sluggish.
Alarm bells should be ringing
The issue of energy bills affordability is all the more pressing when one considers the broader context. Even as energy prices have moderated following the peaks triggered by the Ukraine conflict, UK households still grapple with some of the highest energy costs in Europe, a fact largely attributable to the nation’s heavy dependence on gas for both heating and electricity generation. Experts have described these situations as unsustainable and urged the government to expedite action to alleviate the burden on struggling families.
Simon Francis, coordinator at the End Fuel Poverty Coalition, stated that the current default rates should “ring alarm bells” within the Treasury, highlighting that the energy bill crisis is far from over. His commentary underscores the gravity of the situation, suggesting that without immediate and comprehensive reforms, more households will find themselves trapped in a cycle of mounting debt.
In response to the escalating crisis, the UK’s energy regulator, Ofgem, has proposed reforms aimed at easing the pressure on vulnerable households, including a call for energy suppliers to offer tariffs free of standing charges. Despite these proposals being discussed in consultation phases, the response has been slow, raising concerns among advocates who worry that the energy industry and the government are failing to prioritise the urgent needs of those affected.
Energy bills are the tip of the iceberg
Furthermore, a recent ONS report highlighted that around 59% of adults reported increased living costs over the past month, duplicitously signalling a broader economic malaise affecting everyday life.
Nearly one in five adults are now borrowing more or relying on credit to cover basics, creating a precarious balancing act for households already grappling with a tight financial situation. Alarmingly, around 5% of adults disclosed they had been unable to pay a direct debit or household bill recently, with younger adults more likely to report such struggles.
As the situation unravels, it’s crucial that the government and regulators take decisive action to protect vulnerable consumers, rather than allowing energy bills arrears to fester unchecked.
The rhetoric surrounding support must translate into tangible policies that genuinely alleviate the financial strain on families battered by rising costs. In a nation rich in resources, it is inexcusable for millions to battle against poverty while energy companies see profits soar amidst a backdrop of hardship.
A clear and unified response is not just necessary; it’s an absolute imperative for the well-being of countless British families now caught in a harrowing struggle to keep the lights on.
Featured image via the Canary
