What the new energy debt relief plan says
If you’ve fallen behind on gas or electricity, there’s news worth knowing about. On 29 October 2026, the Government and Ofgem set out a new strategy for energy debt, built on three ideas: relief, repayment and reform. At its centre is a one off energy debt relief scheme, scheduled to launch in spring 2027.
Nothing is open for applications yet, and there’s nothing to apply for today. But the plan has changed since it was first floated, and it affects who might be considered. This post sets out what Ofgem has said, in plain terms, and what you can sensibly do while you wait.
Ofgem regulates the energy market in Great Britain, so this is a Great Britain scheme. If you are in Northern Ireland, your energy market is regulated separately and this strategy does not cover you.
The scheme is aimed at debt built up during the energy crisis of 2022 to 2024. If that sounds like your situation, it’s worth reading on.
How does the energy debt relief scheme work?
The energy debt relief scheme is designed to reduce debt that built up during the 2022 to 2024 energy crisis, for households in genuine financial difficulty who have little realistic prospect of paying it back. Ofgem says it is scheduled to launch in spring 2027.
Ofgem will consult shortly on the revised proposals before the scheme goes live, so the detail could still change. That’s why it’s too early to say who will qualify or how much any one household could have written off.
Ofgem’s press release refers to up to 2.4 million customers currently with eligible debt, and its notes say around 2.4 million customers have historical debt that may be considered, drawing on its impact assessment. The same notes say not all of them will be eligible or receive support, so treat 2.4 million as the size of the pool being looked at, not the number of people who will be helped.
What has changed in the energy debt relief plan?
Ofgem says the energy debt relief scheme will now be delivered in a single phase. It will also include support for pensioners and people on disability benefits, as well as those on means tested benefits, building on previous proposals.
That is the significant change. Earlier versions of the plan were phased, worth up to £500 million and aimed only at people on means tested benefits, so coverage you may have read about a few months ago, including an earlier version of this page, has been overtaken. This page was updated on 4 November 2026 to reflect the new plan.
Customers who receive support will be expected to engage with their supplier and take steps to help prevent debt building up again. Ofgem says safeguards will remain for people who are vulnerable or facing the greatest financial hardship.
On the money, Ofgem’s notes say the scheme targets debt and arrears accumulated between 2022 and 2024, totalling £2.47 billion. That is the size of the debt the scheme is aimed at, not the amount that will be written off. The amount actually written off will depend on customers working with suppliers or debt advisers to agree repayment plans they can realistically stick to.
Key takeaways
- The energy debt relief scheme is scheduled to launch in spring 2027, and Ofgem will consult first.
- Ofgem refers to up to 2.4 million customers with eligible debt, but says not all will be eligible or receive support.
- The £2.47 billion figure is the debt the scheme targets, not the amount to be written off.
- The scheme will now run in a single phase, with support for pensioners and people on disability benefits.
- Customers who get help are expected to engage with their supplier.
What else is in the energy debt strategy?
The energy debt relief scheme is one part of a wider strategy. Ofgem lists four main measures, so it’s worth seeing the whole package:
- A one off Debt Relief Scheme for debt built up during the energy crisis.
- Reforms to the home moves process, aimed at preventing debt building up when people change address.
- A review of the rules on involuntary prepayment meters.
- Changes to how people pay, including a review of standard credit and support for Smart Pay As You Go.
Ofgem also says a detailed review of the Priority Services Register will look at how suppliers identify and support people who may need extra help. Our post on what the review of standard credit means covers the payment methods part in more detail.
Government analysis suggests the strategy could save a typical household around £130 over the next 10 years, by avoiding the cost of debt being added to everyone’s bills, and should prevent more than £5 billion of new debt building up by 2036. Those are government estimates of an effect spread across all bill payers, not money you will see arriving.
What should you do now if you’re in energy debt?
If you’re in energy debt, don’t wait for spring 2027. Contact your supplier now, tell them you’re struggling, and ask what help is available. An early conversation can open more options than a late one.
It also helps to get free, independent advice. Our guide to energy debt help covers the routes available, and our explainer on the energy debt allowance is another useful read.
Keep paying what you can, and keep records of every call and letter. If the energy debt relief scheme opens to people in your position, a clear paper trail will make life simpler.
It’s also worth remembering that the scheme is about historic debt. Bills you run up from now on still need to be paid, so a fair look at your current tariff and payment method is a sensible companion to any energy debt relief you might later receive.
Roo’s advice is to start the conversation this week, because it takes about ten minutes.
Frequently asked questions about energy debt relief
- When does the energy debt relief scheme start?
- Ofgem says it is scheduled to launch in spring 2027, and that it will consult shortly on the revised proposals.
- Can I apply for energy debt relief now?
- No. The scheme has not launched, and Ofgem has not yet finalised the detail. Contact your supplier now if you are struggling to pay.
- Who could be considered for energy debt relief?
- Ofgem says the scheme is for households in genuine financial difficulty with debt built up between 2022 and 2024. It will include support for pensioners and people on disability benefits, as well as those on means tested benefits.
- Does the scheme cover Northern Ireland?
- No. Ofgem regulates the energy market in Great Britain, so this strategy applies there. Northern Ireland has its own energy regulator and arrangements.
- Will all my energy debt be written off?
- Not necessarily. Ofgem says the amount written off will depend on customers engaging with the scheme and agreeing repayment plans, and not all customers with historical debt will be eligible.
Sources
- Ofgem: New circuit breaker strategy launched to help households get out of energy debt supports the spring 2027 launch, the single phase delivery, the inclusion of pensioners and people on disability benefits, the up to 2.4 million customers with eligible debt and the impact assessment figure of around 2.4 million, the £2.47 billion of 2022 to 2024 debt and arrears, the four main measures, the Priority Services Register review, and the government estimates of around £130 over 10 years and more than £5 billion of new debt prevented by 2036.
Checked 30 October 2026. Page updated 4 November 2026.
While you wait, it’s worth checking whether you’re on a deal that suits you, because a comparison takes a few minutes and the right deal could cost you less depending on your usage.
