Energy Debt Relief Scheme: Who May Qualify and What to Do Now

Some households in Great Britain could get help with energy debt built up during the 2022 to 2024 energy crisis, but the proposed Energy Debt Relief Scheme won’t be available straight away. Ofgem expects it to launch in spring 2027, after further consultation on revised proposals. For now, no one can apply through the scheme, and an outstanding balance won’t be cleared just because the proposal has been announced.

That distinction matters if older arrears are making it harder to cover current bills. Ofgem’s plan is aimed at people in genuine financial difficulty who have little realistic chance of repaying historical debt. The announcement, made on 29 October 2026 as part of a wider energy debt strategy, gives an outline of the intended support. It doesn’t yet set final eligibility rules or promise a particular amount of debt relief.

What the proposal says so far

The proposed one-off scheme would focus on unpaid gas and electricity bills that built up during the 2022 to 2024 energy crisis. Ofgem says it will consult on revised proposals before the expected spring 2027 launch. Until that process is complete, households can’t reliably judge whether their account will qualify or how much support might be offered.

Ofgem reported that gas and electricity debt and arrears across Great Britain reached £5 billion in the second quarter of 2026. That figure describes the scale of the wider debt problem. It isn’t a fund available for households, nor does it indicate how much debt the proposed scheme will write off.

Who may be considered

The groups identified in the proposal include people receiving means-tested benefits, people receiving disability benefits and pensioners facing genuine financial hardship. These categories indicate who the scheme may target; they don’t establish automatic eligibility. The final rules, including how they treat the age and circumstances of a debt, have yet to be set.

Ofgem estimates that around 2.4 million customers have historical debt that may be considered. The estimate doesn’t mean that 2.4 million people will receive help. Ofgem says not everyone with potentially relevant debt will qualify or be offered support. It’s useful to keep the difference clear: having debt that could be considered is not the same as having an approved offer.

There’s also no confirmed calculation for the amount that might be cleared from an individual account. Customers who receive help are expected to work with their energy supplier and take steps to stop debt building up again. The announcement refers to safeguards for vulnerable households, but the detailed terms still need to be published.

Keep current bills in the picture

Even if some older debt is eventually written off, the energy used from now on will still cost money. A manageable arrangement needs to account for both parts: paying for current usage and dealing with any past-due balance. The proposal doesn’t cancel bills, pause payments or give households a reason to stop paying amounts they can afford.

If your existing repayments are too high, contact your supplier now and ask it to review the arrangement. Ofgem’s guidance on getting help with energy bills says suppliers must work with customers to agree on a payment plan they can afford. Explain if your income has fallen, essential costs have risen or the current repayments were never manageable.

Before contacting the supplier, gather your latest bill, account balance and a realistic outline of your income and spending. Citizens Advice explains that a repayment plan covers both arrears and current energy use, and that suppliers must consider what a customer can afford. Ask for the two amounts to be explained separately, so you can see what goes toward current usage and what repays older debt.

You could say: “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.” Mention any circumstances that affect your ability to pay or communicate, and keep a record of the supplier’s reply.

Look for support that’s available now

Ask your supplier whether it has a hardship fund or can point you to a grant you may qualify for. Each fund has its own conditions and limits, so applying doesn’t guarantee an award. MoneyHelper’s guide to help with bills covers supplier support, charitable grants and assistance for people who can’t afford to top up a prepayment meter.

If you use prepayment and are struggling to top up, tell your supplier promptly. Ofgem’s prepayment meter guidance explains that suppliers may be able to offer emergency credit or other support. Emergency credit normally has to be repaid, so ask how the repayment will work and whether it could leave you short at a later top-up.

When several bills are overdue, it can be difficult to see what repayment is affordable across the household budget. A free debt adviser can help you consider income, essential spending and arrears together. MoneyHelper’s debt advice locator can help you find support, and this guide to dealing with debt offers a starting point if the paperwork feels hard to tackle.

What to do while the proposal develops

As of 30 October 2026, the expected launch is spring 2027, and revised proposals remain subject to consultation. There’s no application route yet and no confirmed entitlement for people receiving benefits. Keep bills and correspondence together so you have a clear account history if you need it later.

The practical step today is to ask your supplier for a review if you can’t manage your current payments. You don’t need to know whether you’ll qualify for future relief before asking for an affordable plan, checking grant options or seeking debt advice.

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. Contact your supplier now to ask about the support already available.

Will everyone receiving benefits have their energy debt cleared?

No automatic entitlement has been confirmed. The proposal targets people in genuine financial hardship, and Ofgem says that not everyone with potentially relevant historical debt will qualify or receive help.

Does the announcement mean I can stop paying my energy bills?

No. It doesn’t cancel your balance or suspend payments. If you can’t afford your bills or your current repayment plan, contact your supplier and ask for an affordability review.