The average UK household now owes £750 in energy debt, a 50% jump from £500 last year, as reported by The Mirror. That figure is not a statistical outlier. It is the consequence of three consecutive price-cap increases, a cold spring, and a housing stock that leaks heat faster than most European neighbours.
The story, covered by The Mirror, highlights a crisis that is not new but is deepening. Ofgem’s price cap rose to £1,928 in January 2025, then nudged up again in April. The typical household now pays about £160 a month, before any debt repayments. For those already behind, the spiral tightens.
Who owes the £750, and why
The £750 figure is an average across all payment methods. Direct debit customers typically owe less; prepayment meter users owe more. The latter group, often on lower incomes, also face higher standing charges, up to £400 a year in some regions, according to Ofgem data.
The main driver is simple arithmetic. The price cap increased by 6% in January, then another 3% in April. Meanwhile, the average household uses 12,000 kWh of gas and 2,900 kWh of electricity annually. At current rates, that’s roughly £1,900 a year, but only if you pay on time. Miss a month, and the debt compounds with late-payment fees and higher future direct debits.
But there is a second, less discussed factor: home efficiency. A typical 3-bed semi with single glazing and no loft insulation loses 30% of its heat through the walls and roof. That means it needs more energy to stay warm, and that extra usage shows up directly on the bill. The Energy Saving Trust estimates that topping up loft insulation to 270 mm saves about £180 a year. For a household already in debt, that is not a trivial sum.
What the government, and you, can do
The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. The Boiler Upgrade Scheme provides £7,500 off a heat pump. Solar panels, with the Smart Export Guarantee, can cut electricity bills by 40–60% depending on orientation and usage.
Yet uptake remains low. Only 30,000 heat pump grants were claimed in 2024, against a target of 600,000 by 2028. The catch is upfront cost: a heat pump installation runs £7,000–£13,000 even after the grant. Solar panels cost £5,000–£8,000. For a household already £750 in debt, that is out of reach without financing or a local authority top-up.
What this misses is the cumulative saving. A heat pump, combined with good insulation, can cut heating bills by 50–70% compared to an old gas boiler. Over 10 years, that is £6,000–£10,000 saved, far more than the initial outlay. The barrier is not the maths; it is the cash flow.
Practical steps to reduce your debt, and your bills
If you owe £750 or more, the first step is to contact your supplier. Ofgem rules require them to offer a payment plan you can afford. You can also ask for a debt respite, a temporary freeze on repayments, through the Energy Company Obligation scheme if you are on certain benefits.
Next, check your EPC rating. If it is D or below, you may qualify for free insulation or a boiler upgrade. The Energy Saving Trust has a postcode tool that lists local grants. Even a £200 loft-insulation job can pay for itself in 14 months at current prices.
Finally, consider switching to a fixed tariff. The price cap is not the cheapest deal. Some fixed rates are 10–15% lower, though they require good credit. Comparison sites like Uswitch or MoneySavingExpert can show current offers. The catch: you need to clear any existing debt first, or your supplier may refuse the switch.
The £750 figure is a symptom of a broken system, volatile wholesale prices, poor housing stock, and a grant programme that is too slow. But for individual households, the path out is clear: insulate, electrify, and negotiate. The sooner you start, the less you owe.
Frequently Asked Questions
No direct grant pays off existing debt, but the Energy Company Obligation (ECO4) scheme may fund insulation or a new boiler if you are on benefits or have a low EPC rating. Your supplier must offer a manageable repayment plan under Ofgem rules.
Yes, but only if your home is well-insulated first. A heat pump can cut heating costs by 50–70% compared to a gas boiler, saving £300–£600 a year. The Boiler Upgrade Scheme covers £7,500 of the installation cost, but you may need to finance the remainder.
