What is the Ofgem energy debt relief scheme?
The energy debt relief scheme is a new Ofgem backed programme designed to write off up to £500 million in old gas and electricity debt for around 195,000 households across Great Britain. It was set out by the regulator as part of a wider plan to reset and reform growing energy debt, and the first phase is rolling out through 2026. The debt in question built up between April 2022 and March 2024, during the worst of the energy crisis, when bills spiked and plenty of households fell behind through no fault of their own.
This is not a discount on your current tariff and it will not lower future bills. It is aimed specifically at clearing historic arrears that suppliers have been carrying, and in some cases chasing, for years. If you’re also looking to trim what you pay going forward, our guide on cutting your home energy bills covers the basics.
Am I eligible for the energy debt relief scheme?
You may be eligible for the energy debt relief scheme if you had more than £100 of gas or electricity debt at any point between April 2022 and March 2024, and you were receiving means tested benefits during that period. Ofgem’s phase one criteria are deliberately narrow, so not everyone with old energy debt will qualify, even if the amount and timing look similar.
What counts as means tested benefits
This typically covers benefits such as Universal Credit, Pension Credit and income based Jobseeker’s Allowance. If you were receiving one of these when the debt built up, that’s the trigger Ofgem is using to identify who the energy debt relief scheme is meant to help first.
Do I need to apply for the energy debt relief scheme?
No, and this is the bit that catches people out. The energy debt relief scheme is designed to run through automatic enrolment rather than an application form. Suppliers are expected to identify eligible customers from their own records and contact them directly, so you shouldn’t need to hunt down a portal or build a case.
That said, “automatic” is doing a lot of work in that sentence. Supplier records aren’t perfect, and a change of address, a joint account, or a switch to a new provider during the qualifying window can all mean someone gets missed. Ofgem’s rules don’t guarantee every eligible household will be flagged automatically, so it’s worth checking rather than assuming a letter will simply turn up. Not sure who your own supplier answers to, or how it compares? Our rundown of the Big 6 energy providers explains who’s who.
What does the energy debt relief scheme actually write off?
Phase one covers domestic gas and electricity arrears only, not other household debts. Ofgem’s guidance is clear that eligible customers will generally still be expected to keep contributing something towards ongoing energy use, or to engage with a debt advice charity if they genuinely can’t. It’s a partial reset for a defined group, not a blanket bill amnesty.
A quick reality check on scope. £500 million sounds enormous, and it is, but spread across roughly 195,000 households nationally it won’t stretch to every family who’s ever fallen behind on a bill. If your debt built up outside the April 2022 to March 2024 window, or you weren’t on a qualifying benefit at the time, this particular scheme won’t apply to you, whatever your current circumstances.
What should you do if you think you qualify?
Contact your current supplier directly and ask whether you’re being assessed for support under this scheme, rather than waiting to see if a letter arrives. Have rough dates of any arrears to hand, along with your benefit status during 2022 to 2024, since that’s the window Ofgem is checking against.
Keep a written record of the call or email, including who you spoke to and when. If a supplier says you’re not eligible and you think that’s wrong, ask them to explain why, and escalate through the normal energy complaints process if you’re still not satisfied. Being turned down for one scheme doesn’t mean nothing else is available. Ask about a standard repayment plan or hardship fund at the same time. Meeting the criteria on paper doesn’t guarantee a particular outcome for every household, so a firm but polite follow up beats a single phone call and giving up.
Key takeaways
- The energy debt relief scheme could write off up to £500 million of gas and electricity arrears built up between April 2022 and March 2024.
- Eligibility depends on receiving means tested benefits during that window and having more than £100 of qualifying debt.
- Enrolment is meant to be automatic, but supplier records can miss people, so contact your supplier to check rather than assuming you’ll be found.
- Being turned down for this scheme doesn’t rule out a standard repayment plan or hardship support from your supplier.
Frequently asked questions
- Will the energy debt relief scheme wipe out all my energy debt?
- Not necessarily. It’s aimed at debt built up between April 2022 and March 2024 for households that were on means tested benefits at the time. Debt from outside that window, or where you didn’t meet the benefit criteria, generally won’t be covered.
- How will I know if I’ve been accepted onto the energy debt relief scheme?
- Your supplier is expected to contact you directly if their records show you meet the criteria. If you haven’t heard anything but think you qualify, contact your supplier rather than waiting for a letter.
- Does checking my eligibility affect my credit score?
- Ofgem’s published guidance doesn’t suggest a standard eligibility check involves a credit search, but always ask your supplier to confirm exactly what they’re checking before you proceed.
- What happens if my supplier says I’m not eligible?
- Ask them to explain the decision in writing. If you’re still unhappy, raise a formal complaint with your supplier and, if it isn’t resolved, escalate it through the Energy Ombudsman.
- Does this scheme cover business energy debt?
- No. Phase one of the energy debt relief scheme is aimed at domestic households only, not commercial energy accounts.
Whatever happens with any historic debt, it’s worth checking you’re not quietly overpaying on your current tariff too.
