Increase in energy price cap piles more pressure onto households, says StepChange

^{25 February 2025}

Ofgem has today announced that the energy price cap will rise by 6% from April, bringing the average yearly household energy bill to £1,849.

This comes as the latest statistics from Ofgem find household energy bill arrears hit a record £2.9bn in the third quarter of 2024. Meanwhile StepChange data shows more than one in four of its clients (28%) are in energy arrears, and the average amount of energy debt per client in January 2025 was £2,449, a rise of 20% year-on-year when compared with January 2024.

Richard Lane, Chief Client Officer at StepChange Debt Charity, said:

"The increase in the energy price cap will pile more pressure onto households who are already grappling with increases in the cost of living from all angles. New StepChange clients are £2,500 in the red with their energy bills on average, and with council tax and water bills also set to rise shortly, this latest news will heap yet more pressure on them, and millions of other struggling households.

"We strongly welcome Ofgem's plans and work towards a debt relief scheme which will tackle historic debt, and improve standards on the energy debt pathway. But above all, welcome steps to deal with debt must also be accompanied by targeted intervention designed to deliver long-term affordability to those at risk of fuel poverty, and to provide sufficient protection and ongoing assistance to those struggling with energy payments."

"For those struggling with energy bills or if you've fallen into arrears, there is help out there. Reach out to your energy provider as soon as possible as they may be able to arrange more affordable payments or let you know about any hardship grants. If you are still struggling with your debts then independent, free, and impartial debt advice from a charity like StepChange is there to help you."