Consumer Scotland’s Energy Tracker reveals sharp rise in arrears and debt-related prepayment meter use
Almost 400,000 households in Scotland are now in arrears on their energy bills, new research has revealed, highlighting growing financial pressure on consumers despite some improvement in affordability since the height of the cost-of-living crisis.
According to the latest Consumer Scotland Energy Tracker, 15% of survey respondents reported being in energy debt or arrears. This equates to approximately 383,000 households — a notable increase from 9% just a year ago.
The research, based on a survey conducted in January and February 2025, paints a stark picture of continuing struggles for many households. One of the more alarming findings is the sharp rise in the use of prepayment meters imposed due to debt. The proportion of respondents who reported being placed on a prepayment meter as a result of outstanding payments more than doubled in a year, leaping from 16% to 34%.
Additionally, a third of households (33%) said they could not heat their homes to a comfortable level, primarily due to concerns about the cost of energy. This figure has remained largely unchanged from the previous year, underscoring persistent anxiety around energy affordability.
Around 64% of those surveyed admitted to cutting back on other areas of spending in order to afford their energy bills. Again, this figure is consistent with last year’s results, suggesting that many Scots are still making tough sacrifices to keep their homes warm and lit.
The latest Energy Tracker findings were released ahead of Friday’s anticipated announcement from Ofgem on the new energy price cap. The regulator is widely expected to lower the cap, which sets the maximum price suppliers can charge customers on standard variable tariffs. While this could provide some short-term relief, the report indicates that many households remain under significant strain.
Despite the rising number of households in arrears, there are indications that the broader situation may be gradually easing. The proportion of respondents who said they found it difficult to keep up with energy bills has fallen to 16% — or roughly 393,000 households — down from 26% in 2024 and 35% during the height of the crisis in winter 2022–23.
David Eiser, Director of Research and Analysis at Consumer Scotland, acknowledged that while energy bill affordability has shown signs of improvement, the challenges remain pressing for many.
“Affordability of energy bills has improved since the peak of the cost-of-living crisis, but challenges remain acute for some groups, and there are ongoing legacies in terms of energy debt and anxiety for consumers,” Mr Eiser said.
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He stressed the urgent need for government intervention: “This underlines the need for further energy bill support targeted at those consumers who need it most.”
Mr Eiser called on both the Scottish and UK Governments to take immediate action to help those most affected. “As quickly as practical, governments should provide more targeted affordability support for consumers that need it the most.”
He also noted the broader shifts underway in the energy market, including new types of tariffs that could benefit consumers who are able to adjust when and how they use energy. “These reforms, including time-of-use tariffs, provide new opportunities for households to reduce costs, but must be accessible and fair to ensure that vulnerable consumers are not left behind.”
As energy bills continue to weigh heavily on Scottish households, particularly the most vulnerable, policymakers and suppliers alike face mounting pressure to introduce long-term, equitable solutions that support consumers and reduce the growing burden of debt.
