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Rising energy costs push households into debt
UK households are facing unprecedented financial strain as energy bills soar, with court actions for unpaid debts reaching record levels. Mark Sumner, a single father near Redditch, saw his monthly energy costs jump from £80 to £220, pushing him into over £2,000 of debt and forcing him to sell his home.
Record number of court judgements issued
New data from the Registry Trust reveals a sharp increase in County Court Judgements (CCJs) for unpaid debts. In the first three months of 2026, 270,537 CCJs were registered-a 17.5% rise compared to the same period last year. This surge coincides with a historic high in energy debt, now exceeding £4.5 billion across Britain.
The human cost of energy debt
For Mark, the financial pressure became overwhelming. "The energy bills definitely pushed us over the edge," he said. Fearful of opening letters from creditors, he relied on credit cards for daily expenses and turned to food banks. After receiving a CCJ, he described the experience as "horrible" and "quite scary."
His family now lives in social housing, supported by a local charity, but he remains anxious about potential energy price hikes linked to geopolitical tensions. "When's it ever going to end?" he asked. "If your energy bills take a third of your income and rent takes half, you're left with almost nothing."
Struggling to make ends meet
Jane, a Coventry resident with health issues including arthritis and diabetes, owes £800 to her energy supplier. Relying on Personal Independence Payment (PIP) and Universal Credit, she often skips meals to stretch her budget. "I have to count every penny," she said. "It's constant stress."
To manage her spending, she uses supermarket gift cards to limit food expenses. "If I use a debit card, I might overspend. With a gift card, I know I can't go over," she explained.
Charities warn of broader financial crisis
Act on Energy, a West Midlands advice charity, reports that energy debt is now the primary concern for callers-but often masks deeper financial struggles. Chief executive Rachel Jones noted that families, working individuals, and older adults alike are seeking help. "People are living off credit cards or taking loans just to cover daily bills," she said. "It's unsustainable."
Economic indicators point to growing reliance on debt
UK Finance data shows a 3.5% drop in debit card transactions in January 2026, while credit card use rose by 3.6%. Experts suggest this shift reflects households increasingly relying on debt for essentials. A CCJ can severely impact credit scores, making it harder to secure mortgages, rental agreements, or mobile contracts. While the judgement can be removed if paid within a month, it otherwise remains on credit reports for six years.
Systemic pressures demand policy response
Chris Dick, CEO of the Registry Trust, warned that the rising number of CCJs signals broader economic challenges. "These figures highlight whether policy interventions are working," he said. "Persistent debt levels suggest systemic issues that may require urgent attention."
