Almost 400,000 households in arrears as energy debt increases, research shows

Yahoo

22-05-2025

More households in Scotland are in arrears on their energy bills, with research showing there could be almost 400,000 households in debt.
The latest Consumer Scotland Energy Tracker found 15% of respondents to a survey said they are in energy debt or arrears – the equivalent of 383,000 households.
The overall number of households in debt is up from 9% last year.
The survey, which was carried out in January and February 2025, also found the proportion of consumers who said they had been put on a prepayment meter due to debts had more than doubled in 12 months, going from 16% to 34%.
A third of people (33%) said they could not heat their home to a comfortable level because of worries about the cost – with this level said to be similar to the previous year.
Meanwhile, 64% said they had had to cut back on spending in other areas to help afford energy bills – with this also similar to last year.
The latest findings of the tracker, set up by Consumer Scotland to monitor public perceptions on energy costs, were released ahead of Friday's announcement of the energy price cap.
It is expected regulator Ofgem will lower the cap, which sets a maximum price for energy bills on standard variable tariffs.
Despite the increasing numbers of Scots in debt, the research indicates people are finding it easier to keep up with their energy bills than was the case during the peak of the cost-of-living crisis in 2022 and 2023.
The latest survey found 16% of respondents – the equivalent to 393,000 households – said it is difficult to keep up with energy bills, down from 26% in 2024 and 35% in the winter of 2022 to 2023.
Consumer Scotland director of research and analysis David Eiser said: 'Affordability of energy bills has improved since the peak of the cost-of-living crisis, but challenges remain acute for some groups, and there are ongoing legacies in terms of energy debt and anxiety for consumers.'
He said this 'underlines the need for further energy bill support targeted at those consumers who need it most'.
Mr Eiser said the Scottish and UK governments should 'provide more targeted affordability support for consumers that need it the most as quickly as practical'.
He added: 'As well as reforms to affordability support, a number of broader changes are under way in the energy retail market.
'These include a growing number of tariffs that provide opportunities for consumers to reduce their bills by varying when or how they use energy.'