New report reveals 1m households are behind on annual energy bills

About 1 million households are behind on their gas and electricity bills with no repayment plan amid a surge in energy debt over the past decade, according to a new report.

- Jillian Ambrose

The Resolution Foundation thinktank found that the number of customers in energy debt has increased and the size of their debts has surged. It found that between 2012 and 2024 the average gas and electricity debts more than doubled to £1,400 and £1,600 respectively, from an average of around £500.

The number of customers behind on their electricity bills, with no repayment plan, has more than tripled from 300,000 in 2012 to more than one million at the end of last year, the report found. The number of customers who are behind on their gas bills also tripled from 300,000 to 900,000 over the same period.

The debt burden has increased following a surge in energy market prices due to dwindling Russian energy supplies into Europe. The Kremlin began holding back gas exports in the summer before it invaded Ukraine in early 2022, causing Europe's gas market prices to reach record highs. Energy bills in the UK remain around £600 a year higher than they were before the invasion.