New research reveals that almost half of British adults are now deeply concerned about their ability to pay energy bills, marking a significant increase from earlier this year. The debt charity StepChange has published alarming data showing that 45% of adults—approximately 24 million people—are worried about covering their energy costs over the next six months. This figure has surged dramatically from 29% when the same poll was conducted in January, highlighting a rapidly escalating financial pressure on households across the nation.
Widespread Financial Strain and Cost-Cutting Measures
In response to these mounting concerns, nearly three in five adults (58%) have taken active steps to reduce their energy spending during the last three months. Among those specifically worried about paying their bills, this proportion rises sharply to 74%, indicating desperate attempts to manage household budgets. The financial anxiety extends beyond energy, with StepChange's survey also finding that more than a quarter of adults in England and Wales—28% or about 14 million people—are worried about paying their water bills.
Water Usage Reduction Strategies
Two in five households with a water meter (41%) have implemented measures to cut their water spending. Among these cost-conscious consumers, around 43% have reduced how often they shower or bathe, while 39% have cut back on washing clothes or bedding. These behavioral changes underscore the severe impact of rising utility costs on daily life and personal hygiene standards.
Call for National Social Tariffs
The findings emerge alongside StepChange's "Plugging the Gap" research report, which urgently advocates for tiered national social tariffs in both the energy and water sectors. The charity argues that such measures are essential to better protect the most vulnerable households from falling into problem debt. Currently, around 2.5 million households qualify for existing social tariffs, which typically provide savings of approximately 40% on energy costs.
Energy Price Fluctuations and Future Projections
Household energy prices experienced a 7% reduction from April 1st, offering what StepChange describes as a "short-lived respite" for consumers. Ofgem's price cap decreased from £1,758 to £1,641—a £117 annual reduction equating to roughly £10 monthly savings for average dual-fuel households. While this represents an 11% year-on-year decline, bills remain approximately £600 higher than during the winter of 2020-2021.
Concerns are mounting about potential future increases, with Cornwall Insight predicting a 12% rise (about £196 annually) from July due to volatile wholesale markets exacerbated by Middle East conflicts. Simultaneously, water bills across England and Wales are set to increase by an average of 5.4%, adding £33 to annual costs for typical households.
Regional Variations in Water Bill Increases
Significant regional disparities exist in water bill hikes. Severn Trent customers face a 10% increase, while Sutton and East Surrey Water imposes an 11% rise. Bristol Water customers will see a 12% increase, and Affinity Water (central region) customers have been warned of a substantial 13% jump in their bills.
Charity Leadership Demands Government Action
StepChange Chief Executive Vikki Brownridge emphasized the severity of the situation: "Making ends meet is getting harder—household essentials like energy and water are becoming increasingly unaffordable and are driving problem debt at alarming rates. Where people once commonly came to us after a life shock and emergency borrowing, more often we have clients telling us they simply cannot afford the cost of living as cumulative rises and historic arrears cripple budgets."
Brownridge continued: "These pressures are acute amongst our client base but also feature in the country at large, and the coming moment demands action from the Government, with urgent need for tiered national social tariffs across both water and energy, designed to plug the gap, so that those in need of support can access it, preventing problem debt before it takes hold."
Research Methodology and Data Sources
The comprehensive report analyzed data from 153,829 StepChange clients who completed online or telephone debt advice sessions throughout 2025. Additionally, the charity conducted an online survey of 257 clients to gather qualitative insights. These findings were supplemented by a YouGov survey of 2,104 adults conducted earlier this month, providing a robust statistical foundation for the concerning trends identified in household financial stability.
