British households are carrying around £6 billion in unpaid energy bills and arrears, highlighting the growing financial pressure on consumers ahead of another expected rise in energy costs.
Energy industry group EnergyUK said the figure, based on data for the end of June 2026, reflects the growing burden faced by households across the country.
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The disclosure comes as UK energy regulator Ofgem is expected to announce a 4% increase in the domestic energy price cap this week, according to Reuters. The increase would take the cap to its highest level in three years.
EnergyUK said unpaid energy debt is ultimately spread across consumer bills. It currently adds about £50 a year, or roughly 3%, to a typical annual household energy bill.
The industry group warned that outstanding household energy debt could rise to £7 billion by the end of 2026 if no measures are introduced to address the problem.
The warning comes as Ofgem examines options to support consumers struggling with energy debt. A proposed scheme to clear around £500 million of debt for the poorest households has stalled because it requires government legislation.
Rising wholesale energy costs have also increased pressure on household bills. Wholesale prices have surged this year amid the Iran war and remain a key factor in determining the domestic price cap.
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Ofgem reviews the cap every quarter. Its calculation also takes into account suppliers' network costs, as well as environmental and social levies.
The latest debt figures underline the financial strain facing British households as energy costs remain elevated and the country approaches another potential increase in regulated household energy prices.
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