The energy debt relief scheme: who it’s for and what to do now
Published 31 October 2026, checked 31 October 2026. We’ll update this page when Ofgem publishes the detailed rules.
On 29 October 2026 Ofgem and the government announced a scheme to write off some of the energy debt households built up during the 2022–24 price crisis. It’s expected to start in spring 2027. Plenty of the detail hasn’t been decided yet, so this page separates what has been announced from what hasn’t, and covers what you can do in the meantime.
What’s been announced
- Which debt: debt and arrears built up during the 2022–24 energy crisis, £2.47 billion in total, according to Ofgem.
- Who it’s for: customers in genuine financial need with little realistic prospect of repaying. The revised scheme includes pensioners, people on disability benefits and people on means-tested benefits.
- How many: up to 2.4 million customers have debt that could be considered, though not all will be eligible or get support.
- The conditions: customers will need to engage with their supplier, agree repayment plans they can realistically afford and keep to, and take steps to stop new debt building up. The strategy mentions greater use of smart prepayment and supplier repayment plans.
- One phase: earlier plans had more than one stage; the revised scheme is a single phase.
What isn’t known yet
- Whether you’ll need to apply, or your supplier will identify you.
- The exact dates of debt that count, and any minimum or maximum amount.
- How much each household might have written off.
- How the cost is paid for, and what, if anything, it adds to other people’s bills.
These are the questions the consultation should answer. Be wary of anything that states them as settled before then.
The timeline
| When | What |
|---|---|
| 2024 | Ofgem’s first consultation |
| 2025 | Statutory consultation |
| Late 2026 | Further consultation on the revised scheme |
| Early 2027 | Ofgem’s decision |
| Spring 2027 | Scheme expected to start, subject to the consultation |
That timeline is from the government and Ofgem’s joint strategy on energy debt, which says the start date is subject to the consultation.
If you’re in energy debt now
- Talk to your supplier. The scheme depends on engaging with them, and suppliers are expected to offer repayment plans you can afford. Tell them honestly what you can pay. Some suppliers let you pay weekly or fortnightly, which can be easier to manage.
- Get free debt advice. Citizens Advice and other free debt charities can help you negotiate with your supplier and check you’re getting every benefit you’re entitled to. In England and Wales there’s a dedicated Consumer Energy Debt Advice service.
- Join the Priority Services Register if you can. It’s free, and open to people who’ve reached state pension age, have a disability or long-term health condition, have young children, or have had a change in circumstances like losing a job. Ofgem explains how to join.
- Check your payment is right. If your monthly direct debit is too low for winter, debt builds up by spring. The direct debit checker shows what it should be for the year ahead.
- Cut what you can without going cold. Two free changes to a combi boiler save gas without touching the thermostat: lowering the flow temperature and switching off preheat.
Other help with bills
The same strategy confirms the £150 Warm Home Discount is being expanded to around 6 million households and extended to 2031. That’s separate from debt relief. The grant eligibility checker covers help with insulation and heating.
Why it’s happening
Energy debt hasn’t come down since the crisis. Domestic energy debt and arrears reached about £5 billion in Q2 2026, with more than 2 million households in debt, and fewer than half of them have a repayment arrangement. Debt that suppliers can’t recover ends up spread across everyone’s bills, so the strategy aims to clear the oldest debt once and stop new debt building up.
Common questions
Who will get their energy debt written off?
Ofgem says the scheme is for customers in genuine financial need with little realistic prospect of repaying debt built up during the 2022–24 energy crisis. Pensioners, people on disability benefits and people on means-tested benefits are named as groups it will support. Up to 2.4 million customers have debt that could be considered, but not all will qualify. The detailed rules come with Ofgem’s consultation.
When does the energy debt relief scheme start?
It is expected to start in spring 2027, after a further Ofgem consultation in late 2026 and a decision early in 2027. The timing depends on that consultation.
Do I need to apply?
Nobody knows yet: Ofgem and the government haven’t said how customers will be identified. The announcement says it will be delivered with suppliers and depends on customers engaging with them, so the most useful thing now is to talk to your supplier about any debt.
Will all my debt be written off?
Not necessarily. Ofgem says how much is written off will depend on customers engaging, including agreeing repayment plans they can afford and keep to, and taking steps to stop new debt building up. It covers crisis-era debt from 2022 to 2024, not debt built up since.
From Ofgem’s announcement and the joint energy debt strategy, both published at the end of October 2026. Priority Services Register details from Ofgem.