Energy arrears are a priority debt, but you have more rights and more support available than most people realise. Here’s what your supplier must do, what help exists, and how to get back on track.
Energy and water arrears have become one of the most common debt problems in the UK, and for understandable reasons. Bills rose sharply, incomes didn’t keep pace, and many households moved from just about coping to falling behind through no fault of their own. If you’re rationing heating, dreading the next statement, or already getting letters, this page explains where you stand and what can actually be done.
The first thing worth knowing is that gas and electricity arrears are priority debts. That’s not about how stressful they feel; it’s about consequences. Your supplier has powers that ordinary lenders don’t, including, in the last resort, disconnection or forcing a prepayment meter. That’s why energy debt should be dealt with ahead of credit cards, catalogues and personal loans.
Water is slightly different, and the difference matters: water companies in England and Wales cannot legally disconnect a domestic property for non-payment. That doesn’t mean water debt can be ignored, as they can still pursue you through the courts, but it does mean water sits a step below energy in urgency.
This is the single most useful thing to understand. Under Ofgem rules, energy suppliers are obliged to work with customers who are struggling. If you contact them and explain you’re in difficulty, they must offer you a payment arrangement based on what you can genuinely afford, taking your income and circumstances into account. This isn’t discretionary goodwill; it’s a licence condition.
What they should offer includes:
If your supplier isn’t helping: ask to make a formal complaint. If it isn’t resolved within eight weeks, or you receive a deadlock letter, you can take it to the Energy Ombudsman free of charge. Suppliers are required to tell you about this right.
A striking amount of the support that exists goes unclaimed simply because people don’t know it’s there. It’s worth working through this list properly.
Several of the large energy suppliers run their own trust funds or hardship schemes that can clear or reduce arrears, sometimes entirely. Some are open only to their own customers, while at least one has historically been open to customers of any supplier. Awards are typically based on genuine hardship and a realistic budget, so having your income and outgoings written down helps.
An annual discount applied to the electricity accounts of eligible low-income households. Eligibility and the application route vary between nations and suppliers, so check with yours.
Seasonal support for eligible households, usually linked to age or to receiving particular benefits. These are paid through the benefits system rather than by your supplier.
A free service you can join if you’re of pensionable age, disabled, have a long-term health condition, are pregnant or have young children, or need extra support for another reason. It doesn’t reduce your bill, but it gives you additional protections, advance notice of interruptions, and in some cases protection from disconnection.
Councils in England distribute funds intended to help households with essentials including energy. Schemes vary by area and change periodically, so it’s worth asking your local council directly what’s currently available. Scotland, Wales and Northern Ireland run their own equivalent schemes.
Large numbers of households are entitled to benefits they aren’t claiming. A free benefits check through an advice organisation can identify money you should already be receiving, which changes the affordability picture entirely.
Before agreeing to repay anything, make sure the amount is correct. Billing errors are more common than people assume.
Suppliers sometimes try to move customers in arrears onto a prepayment meter so that debt is repaid gradually as you top up. There are real protections here that people are often unaware of.
A supplier can only install a prepayment meter for debt where it is safe and reasonably practicable for you. Rules tightened considerably after concerns about forced installations, and there are now stronger protections for people in vulnerable circumstances, including older customers, households with young children, and people with serious health conditions. Involuntary installation requires the supplier to follow a strict process, and for certain vulnerable groups it should not happen at all.
If you already have a prepayment meter and are repaying arrears through it, the rate of repayment must be affordable. If the deductions are leaving you unable to keep the heating on, contact your supplier and ask for the rate to be reduced. They are expected to take your ability to pay into account.
Self-disconnection is dangerous and it counts. If you’re on a prepayment meter and simply can’t afford to top up, tell your supplier. Going without heat or power is a safety issue, and suppliers can offer emergency credit, additional support credit, or a review of your repayment rate. Don’t sit in the cold in silence.
Disconnection for debt is a last resort, and it is now rare, but it remains legally possible for energy. Before disconnecting, a supplier must have offered you a payment plan and given proper notice, and it must not disconnect certain vulnerable customers, particularly during the winter months. If disconnection is being threatened, that is the point to get urgent advice rather than hoping it passes.
For water, as noted above, disconnection of a domestic property for non-payment is not permitted in England and Wales. Water companies also run their own affordability schemes, including social tariffs, and the WaterSure scheme can cap bills for eligible metered households with high essential usage due to a medical condition or a large family. If you’re struggling with water bills, ask your water company what social tariff they offer, as almost all of them have one.
Energy and water arrears rarely exist in isolation. If they sit alongside credit cards, loans or catalogues, tackling the whole picture usually works better than fighting each debt separately.
Energy and water arrears can be included in an IVA and in a Debt Relief Order where you meet the criteria. They can’t be included in a Debt Management Plan, which covers non-priority debts only, but a DMP can still help significantly: by reducing what you pay to non-priority creditors, it frees up money to keep your energy account on track and clear arrears directly with the supplier.
Which route makes sense depends on your income, what you owe overall, and your circumstances. That’s worth talking through properly rather than guessing.
If that feels like a lot to face on your own, that’s exactly what we’re here for. Talking it through costs nothing and there’s no obligation.
It takes about a minute to tell us what’s going on. No commitment, no judgement, and nothing to pay to talk things through.
Get free, friendly helpFree, impartial debt advice is also available from MoneyHelper, StepChange, Citizens Advice and National Debtline.