Ofgem and the government plan a one-off Debt Relief Scheme in spring 2027. It'll write off some energy debt that built up during the 2022 to 2024 energy crisis, for households in genuine financial difficulty. There's nothing to apply for yet, so watch out for anyone asking you to pay or sign up.

The plan was announced at the end of October 2026 as part of a wider strategy on energy debt. Here's what we know so far, what could still change and what you can do now if you're behind on your bills.

What has actually been announced?

On 28 October 2026, the Department for Energy Security and Net Zero (DESNZ) and Ofgem published a joint strategy called the "Energy debt circuit breaker". It covers England, Scotland and Wales and rests on three ideas: relief, repayment and reform.

The Debt Relief Scheme is the relief part. As of November 2026, Ofgem says it's aimed at households that built up debt during the 2022 to 2024 energy crisis and have little realistic chance of paying it back. Ofgem puts the debt and arrears from that period at £2.47 billion.

The government's timeline says Ofgem will run another consultation on the scheme's design in late 2026. The launch is then planned for spring 2027. That's a target, so the date could still move.

Who could qualify?

The final rules haven't been set yet. As of November 2026, the revised plan would run in a single phase covering three groups:

  • people on qualifying means-tested benefits
  • pensioners
  • people getting disability benefits

Ofgem's impact assessment found that up to 2.4 million customers have historic debt that could be considered. Ofgem has also been clear that not all of them will qualify or get help.

Being in one of those groups won't be enough on its own. Ofgem says the amount written off will depend on people engaging with the scheme. That includes working with their supplier or a debt adviser to agree repayments they can actually afford and keep up.

Why has the date moved?

The scheme was first meant to start much sooner. In autumn 2025, Ofgem proposed a first phase from early 2026. It would have helped around 195,000 households on means-tested benefits with more than £100 of debt from April 2022 to March 2024, writing off up to £500 million.

That timetable depended on new legislation letting suppliers check benefit records with the Department for Work and Pensions. The plan has now been redesigned. It's bigger, aimed at more groups, runs in one phase and is due in spring 2027.

The earlier proposals give a sense of the likely design, but they aren't the final rules. Under those proposals, eligible households would have been found and contacted by their supplier automatically. They'd also have needed to pay something towards their debt or usage, or agree to work with a debt advice charity. Expect the next consultation to confirm or change these points.

Do I need to apply, and could this be a scam?

As of November 2026, there's no application process. You can't register early and no one can get you a place in the queue.

In practice, that means:

  • Be wary of any call, text, email or doorstep visit offering to "get your energy debt written off" for a fee.
  • Don't give out bank details or log-ins to anyone claiming to be from the scheme. If you're unsure, contact your supplier yourself using the number on your bill.
  • Ofgem doesn't deal with individual customer accounts. Any genuine contact about your debt should come from your own supplier.

Will it affect my bill if I'm not in debt?

Unpaid energy debt already costs every household something. Suppliers recover part of their bad debt costs through the price cap. As of November 2025, Ofgem said a typical consumer paid around £52 a year towards managing and writing off energy debt.

One aim of the scheme is to cut that debt pile, so this cost stops rising. The government says the wider strategy should save a typical household almost £30 by 2030. The exact cost and funding of the revised scheme will come out in the consultation.

What else is in the strategy?

The Debt Relief Scheme is a one-off, so the strategy also tries to stop new debt building up. As of November 2026, the main measures include:

  • Moving home: reforms so it's easier to set up an energy account when you move. The aim is to avoid surprise bills, which are one of the biggest causes of debt.
  • Prepayment meters: a review of the rules on fitting prepayment meters without the customer's agreement. It has to balance protecting vulnerable people with letting suppliers deal with debt.
  • Smart prepayment: Ofgem is working with suppliers to offer more smart pay-as-you-go options.

I'm in debt now. Should I wait for the scheme?

No. Spring 2027 is months away, debt from after the crisis period may not count, and you may need to be working with your supplier or an adviser to qualify anyway. Getting help now can only make things easier.

Citizens Advice says to contact your supplier to talk about ways to pay what you owe. The supplier should also check that any repayment plan is affordable. If it isn't, go back to them and say so.

It's also worth checking for grants. Some suppliers run hardship funds, and charitable trusts can help clear energy debt, sometimes even if you're not their customer. Some trusts ask you to speak to a debt adviser first, so doing that early can help you on two fronts. Citizens Advice also suggests looking for energy grants on your local council's website.

If your supplier isn't treating you fairly, use its complaints process. If it's still unresolved after eight weeks, or you get a deadlock letter, you can take it to the Energy Ombudsman for free.

What to do next

  • Find your latest bill or account statement and note how much you owe and roughly when it built up.
  • Contact your supplier now to agree an affordable repayment plan. Don't wait for spring 2027.
  • Ask your supplier whether it has a hardship fund or grant.
  • Get free debt advice from Citizens Advice or another free, regulated debt charity. Being in touch with an adviser may help you later.
  • Check you're claiming every benefit you're entitled to, as many debt and bill schemes are linked to benefits.
  • Ignore anyone asking for a fee or personal details to "get you on" the Debt Relief Scheme.
  • Look out for Ofgem's consultation in late 2026, which should set out the final eligibility rules.

This is general information, not financial advice.

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