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UK energy arrears hit record as price cap set to rise
Energy UK said unpaid household energy debt more than 30 days could reach £7bn by year end, as the price cap is expected to increase in October.
Domestic energy debt and arrears in Great Britain rose by about £500m over the past year to a record £6bn at the end of June, according to the Guardian Business, with Energy UK warning that higher winter gas and electricity prices will push the problem further.
Energy UK said the amount of energy debt left unpaid for more than 30 days is likely to accelerate to £7bn by the end of the year, citing rising gas market prices as the Middle East conflict continued to affect markets.
The outlet also said the energy price cap regulator is expected later this week to confirm a 4% increase for millions of households from October, with Energy UK chief executive Dhara Vyas arguing too many households are still under strain from high bills.
Energy UK also pointed to Cornwall Insight forecasts that for the final three months of 2026 the typical household could face an annual gas and electricity bill equivalent of £1,729, as electricity rates and gas charges are expected to rise.