Energy Debt Relief Scheme Explained and Who Could Get Help
Written by Al Baker | Founder & Editor, The Penny Pincher - Last updated: the 30th of October 2026
If you’re still paying off energy bills from the price rises of a few years ago, keeping up with this winter’s bills can feel like running to stand still. Ofgem has announced plans for an Energy Debt Relief Scheme aimed at households with little realistic prospect of clearing that older debt. It could offer meaningful help, but the planned spring 2027 launch means there’s nothing to claim under this scheme yet.
The proposal is part of a wider energy debt strategy announced on the 29th of October. It’s worth understanding who it’s intended to help, especially if a headline has left you wondering whether your balance will disappear. There’s also help you can ask for now, without waiting for the scheme’s final rules.
What is the Energy Debt Relief Scheme?
Ofgem’s announcement sets out a proposed one-off scheme targeting unpaid gas and electricity bills built up during the 2022 to 2024 energy crisis. It’s aimed at people in genuine financial difficulty who have little realistic prospect of repaying that debt. Ofgem says it will consult on revised proposals before the expected launch in spring 2027.
The regulator reports that total gas and electricity debt and arrears in Great Britain reached £5 billion in the second quarter of 2026. That figure describes the scale of the wider problem; it isn’t the amount promised for write-offs. Nor does the announcement mean that every household with an outstanding bill will have it cleared.
Who could get help?
The proposed groups include people receiving means-tested benefits, people receiving disability benefits and pensioners facing genuine financial hardship. Final eligibility rules still need to be settled, so being in one of those groups shouldn’t be treated as confirmation that your account will qualify. The age and circumstances of the debt will matter too.
Ofgem estimates around 2.4 million customers have historical debt that may be considered for support, but explicitly says not all will be eligible or receive help. That makes “2.4 million people will have their debt wiped” too strong a claim. For now, the useful distinction is between debt that could be considered and a household receiving an actual offer of relief.
Will the scheme clear the whole balance?
The announcement doesn’t give you a way to calculate a guaranteed write-off for your own account. Customers receiving help will be expected to work with their supplier and take steps to prevent debt building up again, with safeguards for vulnerable households. Until final terms are published, there’s no sound basis for promising a particular amount.
It also helps to separate what you already owe from the cost of the energy you’re using now. Even if some historical debt is eventually written off, your home will still have ongoing energy costs. Any plan needs to make those future bills manageable as well as deal with the old balance.
Ask for an affordable repayment review now
You don’t need to wait until spring to tell your supplier that you’re struggling. Ofgem’s guidance on getting help with energy bills explains that suppliers must work with you to agree a payment plan you can afford. Ask it to review an existing arrangement if your income has fallen, your essential costs have increased or the repayments were never manageable.
Before that conversation, gather your latest bill, account balance and a realistic picture of your income and spending. Citizens Advice explains that a repayment plan covers both the arrears and current energy use, and that suppliers must consider what you can afford. Ask the supplier to explain those two parts of the payment separately so you know what’s going towards each.
You could start with: “I’m struggling to afford my energy payments and need you to review my repayment plan. Please explain how much covers current usage and how much repays the debt, and assess what I can realistically afford.” Add any circumstances affecting your ability to pay or communicate, and keep a record of the response.
Check existing grants and support
Ask whether your supplier has a hardship fund or can direct you to a grant you may qualify for. These schemes have their own conditions and funding limits, so an application doesn’t guarantee an award. MoneyHelper’s guide to help with bills explains options including supplier support, charitable grants and help for people struggling to top up a prepayment meter.
If you use prepayment and can’t afford to top up, tell your supplier promptly rather than waiting for the new debt scheme. It may be able to offer emergency credit or other support, although credit normally needs to be repaid. Ask how repayment would work so it doesn’t leave you short again at your next top-up.
Get help with the whole budget if several bills are overdue
Energy debt often sits alongside other pressures, and trying to solve each bill separately can make it harder to see what’s affordable overall. A free debt adviser can look at your income, essential spending and other arrears together. MoneyHelper’s debt advice locator can help you find support, while our guide to dealing with debt offers a starting point if you’re finding it difficult to face the paperwork.
The proposed scheme offers a reason to watch for further details, but today’s practical step is to get your supplier to review what you can afford. Keep your bills and correspondence so you have an account history ready if it’s needed later. You don’t need to know whether you’ll qualify for future relief before asking for help with a payment you can’t manage now.
Frequently asked questions
Can I apply for the Energy Debt Relief Scheme now?
No. As of 30 October 2026, the scheme is expected to launch in spring 2027 and revised proposals are still subject to consultation. You can contact your supplier now about existing support.
Will everyone receiving benefits have their energy debt written off?
No automatic entitlement has been confirmed. Ofgem says the scheme will target genuine financial hardship, and not everyone with potentially relevant historical debt will qualify or receive support.
Does the announcement mean I can stop paying my energy bills?
No. The announcement does not cancel your balance or suspend payments. If you can’t afford your bills or an existing repayment plan, contact your supplier and ask for an affordability review.
