Infrastructure & Energy

How you can save money on your energy bill as debts rise

Experts say support is available as total debt and arrears to suppliers hit a new record.

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June 25, 2026
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How you can save money on your energy bill as debts rise

Image source, Getty Images

ByKevin PeacheyCost of living correspondent

Published27 May 2026Updated 27 minutes ago

The amount of money owed to energy suppliers by customers has risen again to a new record high of £4.79bn.

Regulator Ofgem said that total debt and arrears in England, Wales and Scotland had risen by 15% in a year.

The data, external is updated every three months, with the newly-published figures covering the period from January to the end of March. They relate to energy customers who have been in debt for more than three months.

Average arrears for those without a repayment plan hit £1,876 for electricity and £1,623 for gas – more than twice the amount as those who have a repayment agreement.

Energy prices will rise for millions of households in July – driven by the increase in the cost of gas.

Experts say there are options to cut bills, even though people may feel they have already made every saving possible.

Tackle existing energy debt; suppliers may offer relief

Collectively people owe £4.79bn in unpaid bills and charges.

Suppliers say they may write off some of that debt, provide payment plans, or help with the cost of white goods, such as fridges and washing machines – but only if you tell them you’re in trouble.

You can check what your supplier offers through various support measures, external.

Consider a fixed deal – but be aware of the risk should prices fall

Some 22 million people – about 40% of billpayers – have the certainty of fixed tariffs.

In these deals, the cost per unit does not change for the term of the tariff, which is usually a year. The total bill still depends on the amount of energy used.

Options on the market are cheaper than the price cap level. However, if international events do change and prices fall sharply, savings might not be so clear-cut.

Look at how you pay – monthly is cheaper than quarterly

Receiving your bill every quarter, rather paying a monthly direct debit, is typically about £140 a year more expensive, says regulator Ofgem.

There are still about seven million of these so-called standard credit accounts. Although some people like the quarterly payment of bills, it is a more expensive option.

Take a fresh look at habits and energy saving measures

The record-breaking heatwave is not necessarily the time you think about getting your home winter-ready.

But experts say it is the perfect time to check if you can do more to block draughts, change cooking habits, bleed radiators and generally be more energy efficient.

Short shower times can also make a difference, albeit small. There are egg timers and even four-minute songs that can keep time for you.

Check whether you are eligible for grants

Millions of pounds goes unclaimed in the benefits system. Pension credit, in particular, is underclaimed and yet it can help older people with financial support as a gateway to other benefits.

Grants for energy efficiency improvements may also available through schemes organised by local councils.

Eligibility criteria, such as income and location, varies. Charities such as Citizens Advice can help people see if they can get assistance.