Household arrears on energy, housing and other essential bills increased again in 2025, with debts continuing to rise faster than inflation, according to new figures from StepChange Debt Charity.
The charity’s 2025 Statistics Yearbook, shows growing financial vulnerability among people seeking debt advice, with the lowest-income households facing the greatest pressure.
Average household arrears rose 11% year on year, from £3,911 to £4,345, while average unsecured debt increased by 8% to £16,874.
Energy arrears also climbed, rising 9% to £2,560, highlighting the continued impact of high utility costs.
Housing-related debt showed some of the sharpest increases.
Average rent arrears rose 15% to £2,372, while mortgage arrears jumped 22% to £12,534, despite slower growth in rents and house prices across the wider market.
StepChange said high levels of unpaid essential bills are becoming the “new normal”, with many households struggling to cover everyday costs while repaying historic debts.
There were some signs of improvement, with the proportion of clients in a negative budget falling slightly to 28% but the share of those unemployed within that group has increased, reflecting ongoing uncertainty in the labour market.
Chief Executive Vikki Brownridge called for stronger government action, including social tariffs for energy and water, to prevent households falling into debt simply to afford basic living costs.
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