UK Household Energy Debt Reaches £6 Billion, Industry Warns

British households are carrying £6 billion ($8.18 billion) in unpaid energy debt and arrears, according to industry body EnergyUK. The figure, which reflects the situation at the end of June 2026, was shared with journalists on Monday ahead of an expected announcement from regulator Ofgem.

Ofgem is set to raise its domestic price cap by 4% this week, pushing it to a three-year high. The cap is reviewed quarterly and is influenced heavily by wholesale energy prices, which have climbed sharply this year amid the ongoing Iran war. The formula also accounts for supplier network costs and environmental and social levies.

EnergyUK noted that the unrecovered debt is spread across all consumer bills and currently adds roughly £50 per year, or about 3%, to a typical annual energy bill. Without intervention, the group warns the total could reach £7 billion by the end of the year.

Ofgem has been exploring ways to assist indebted consumers, but a proposed scheme to clear £500 million of debt for the poorest households has stalled, as it requires government legislation to move forward.