Utility bill hikes are fuelling the rise in finance fears for families

Debt charity warns of the 'sheer weight' of everyday costs, and says central government must step in to ease money pressures and help households to build their financial reslience

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British household energy debt has tripled in a decade as cost-of-living pressures push families into arrears on priority bills, according to a report.

The number of customers falling behind on their electricity bills with no repayment plan in place has more than tripled from 300,000 in 2012 to more than one million at the end of 2024, with the number of customers falling behind on their gas bill also tripling from 300,000 to 900,000 over this period, according to Resolution Foundation research.

The Money On My Mind report suggests that positive trends among low to middle-income households included increased saving and falling credit card debts.

But new financial worries for families included rising energy debt and council tax arrears "that need to be addressed", it said.

The report said the poorer half of the 13 million working-age families in Britain still struggle to save, with more than two in five having less than £1,000 in available savings.