The latest figures from the energy regulator, Ofgem, provide a sobering backdrop to the TUC’s demands. According to the regulator’s most recent quarterly report, more than two million gas and electricity accounts are now in arrears without any formal repayment plan in place. This specific category of debt is particularly concerning to policymakers and advocacy groups, as it indicates that a substantial portion of the population is not merely struggling to keep up with bills but has reached a point of financial paralysis where they cannot even commit to a structured schedule to clear their debts.
The breakdown of the data for the second quarter of 2026 shows that 1.19 million electricity accounts and approximately 955,000 gas accounts have fallen into arrears. These figures represent 4% of all electricity customers and 3.9% of gas customers in the country. Perhaps most alarming is the rate of acceleration; both totals have surged by 5% in just a three-month period, suggesting that the economic pressures on households are intensifying rather than stabilizing. This upward trend has pushed the total domestic energy debt and arrears to a record-breaking £5.02 billion, marking a 13% increase over the past year.
In response to this mounting crisis, the TUC is urging government ministers to utilize the platform of the party conference to announce a more aggressive strategy for tackling the cost of living. Central to their proposal is the introduction of a permanent social tariff, which would provide discounted energy rates to lower and middle-income households. Unlike temporary support measures or one-off rebates, a social tariff would be embedded into the energy market structure, ensuring that those most vulnerable to price fluctuations have a guaranteed safety net.
The TUC’s proposed model for the social tariff is designed to be both impactful and scalable. According to the union body’s estimates, the scheme could reduce annual energy bills by as much as £517 for the lowest-income households during periods of acute price pressure. The proposal also includes provisions for smaller, sliding-scale discounts that would extend further up the income bracket, ensuring that "squeezed middle" families, who often fall just outside the eligibility criteria for traditional welfare support, also receive much-needed relief.
To fund this ambitious social program, the TUC has pointed toward the record profits currently being enjoyed by the banking industry. The union body argues that the government should increase the bank corporation tax surcharge as a means of redistributing wealth from highly profitable financial institutions to struggling energy consumers. At present, the bank surcharge is set at a relatively modest 3% on qualifying profits exceeding £100 million. The TUC contends that this rate is insufficient given the scale of the national emergency.
