This sharp increase raises serious concerns about the ability of households to heat their homes this winter while repaying built up debt.

Council tax arrears have also risen steeply across the same time period, now averaging £2,385, a 13% increase on the previous year.

Higher household arrears are coupled with a worrying trend of increased borrowing on consumer credit. The proportion of StepChange Scotland clients citing the need for credit to cover everyday living costs as their main driver of debt has risen from 5% to 7% in the past year. Meanwhile, credit card debt remains the most common debt type, with two thirds (66%) of clients holding credit card debt, up from 61% in the first half of 2024.

StepChange Scotland says the increasingly precarious financial position many households find themselves in should prompt more concrete action from the UK and Scottish Governments.

The charity would like to see urgent steps taken to eliminate historic energy debt which has accumulated over the last few years and has welcomed Ofgem’s plans for a debt relief scheme.

StepChange Scotland has long raised concerns about the problematic nature of council tax debt collection, with reform in this area urgently needed.

Vikki Brownridge, CEO of StepChange Scotland, said: “While we may not be thinking about our energy bills quite as much during the summer months, it’s alarming to see how much energy debt has built up among our clients in Scotland this year, alongside council tax arrears. These kinds of priority debts can put a severe financial strain on households, as they grapple with repaying debt whilst trying to keep up with essential expenses. 

“After years of cost of living pressures, easing the burden on struggling households requires intervention from government. We’d like to see urgent action to address historic energy debt, alongside a more compassionate approach to council tax debt collection. Too often local authorities quickly jump to heavy handed enforcement action, including use of Sherriff Officers if people fall behind with bills. Our research shows it is often the most vulnerable households facing council tax arrears.

“If you find yourself falling behind with household bills, or worried about managing debt repayments, don’t hesitate to reach out to a charity like StepChange Scotland for free, impartial and non-judgemental debt advice and debt solutions. It’s also important to let your energy provider know as soon as possible if you’re having difficulty keeping up with your bills – there may be energy grants or tailored support available to help.”