At a glance
The short answer: the scheme is planned, not open
The Energy Debt Relief Scheme is a planned one-off programme for households in Great Britain with energy debt linked to the high-price period of the 2022–24 energy crisis. Government and Ofgem say it will target people in genuine financial difficulty who have little realistic prospect of clearing that historic balance. The intended launch is spring 2027.
It is not open for applications yet. Ofgem is due to consult again on the revised design in late 2026, and the final eligibility rules, qualifying benefits, debt dates and supplier process have not been published. Do not assume a social-media post, email or caller can enrol you now.
If you already owe money for gas or electricity, keep dealing with the supplier rather than waiting for the scheme. Ofgem says a household in difficulty can ask for a payment plan, a payment break or reduction, a review of current payments and debt repayments, and access to any supplier hardship fund.
Who could qualify for the Energy Debt Relief Scheme?
The latest joint government and Ofgem strategy widens the planned scheme beyond the earlier means-tested-benefit proposal. It says the single-phase scheme will cover eligible consumers on means-tested benefits, people receiving disability benefits and pensioners. Those broad groups are confirmed policy, but the exact benefit list and evidence checks still depend on the forthcoming consultation and final decision.
The scheme is also targeted by financial need and the age of the debt. A person being a pensioner or receiving a named type of benefit will not necessarily make every balance eligible. Ofgem says around 2.4 million customer accounts hold historic debt that could be considered, but specifically warns that not all of those customers will qualify or receive support.
Use the announcement as a reason to organise records, not as proof of an entitlement. Keep bills, statements, benefit or pension documents, messages from the supplier and any affordable-payment-plan agreement. Wait for the supplier or Ofgem to explain the official process after the final rules are made.
- Potential customer groups: people on means-tested benefits, disability benefits and pensioners.
- Financial test: genuine financial need and little realistic prospect of repaying the historic debt.
- Debt period: arrears arising from the 2022–24 energy crisis, with precise qualifying dates still to be finalised.
- Location: domestic energy accounts in England, Scotland and Wales.
What debt is the scheme intended to cover?
The scheme is aimed at old domestic gas and electricity debt built up when energy prices surged during 2022–24. Ofgem reports £2.47 billion of arrears from that period, but that is the total pool being assessed rather than the amount that will automatically be written off. The eventual relief will depend on the final rules and on eligible customers engaging with the scheme.
New energy use will still have to be paid for. Debt relief does not make a current tariff free, cancel future bills or replace accurate meter readings. If part of a balance comes from an incorrect estimate, wrong tariff, previous occupier or billing mistake, ask the supplier to correct that separately. Our estimated gas bill guide explains how to submit a current reading, while the gas bill complaint guide covers unresolved disputes.
Do not agree that a disputed sum is correct merely to appear “engaged”. Tell the supplier which amount you accept, which amount you dispute and why. Keep the complaint reference and continue paying what you can towards genuine current use while the issue is investigated.
What “re-engaging with your supplier” is likely to mean
Government and Ofgem have made customer engagement a condition of the planned relief. The strategy refers to affordable supplier repayment plans and smart prepayment as possible ways to prevent new debt building up, while saying safeguards must remain for vulnerable households and people in the greatest hardship.
The final engagement test is not settled. For now, a sensible record would show that you have responded to the supplier, supplied accurate meter readings, explained your income and essential outgoings, and discussed a payment level you can actually maintain. If a prepayment meter would be unsafe or impractical for your household, say so clearly rather than accepting it as the only route to help.
Ofgem’s current guidance says suppliers can review payments and debt repayments and offer breaks or reductions. For prepayment customers, the supplier must work with the customer on an affordable repayment plan. Our gas prepayment meter guide explains emergency and additional support credit, which are separate from the proposed debt-relief scheme.
Worked example: separate current use from old debt
A useful payment-plan discussion separates the estimated cost of energy being used now from the amount available for old arrears. Suppose a household expects current gas and electricity use to cost £110 a month and can afford £135 in total after essential spending. The starting proposal for historic debt would be £25 a month: £135 minus £110.
At that rate, the household would pay £300 towards old debt over 12 months. That is not a recommended or guaranteed figure; a supplier must consider the customer’s actual ability to pay, and seasonal use may make a flat estimate unsuitable. The point is to avoid a repayment amount that consumes money needed for current energy and immediately creates fresh arrears.
Use recent bills and meter readings for the current-use estimate. For gas, enter two readings, the billing dates and the exact tariff rates in the gas bill calculator. Then take evidence of rent or mortgage, food, travel, health and other essential costs into the supplier discussion.
| Item | Example amount |
|---|---|
| Affordable total energy payment | £135 |
| Expected current energy use | £110 |
| Amount left for historic debt | £25 |
| Historic debt paid over 12 months | £300 |
Illustrative arithmetic only. A real plan should reflect actual bills, essential spending, vulnerability and ability to pay.
What to do now if you have energy arrears
Do not wait until spring 2027 if the balance is growing or you cannot keep the home safely warm. Contact the supplier, ask for the specialist affordability or debt team, and request a plan based on what remains after essential household spending. Give a current meter reading so new charges are not based on an avoidable estimate.
Ask the supplier to identify the old debt separately from current use, confirm the dates when it built up and explain any interest, fees or debt-recovery deductions. Request written confirmation of the arrangement. If circumstances change, ask for another affordability review rather than silently missing an unaffordable payment.
Check the broader options in our help paying a gas bill guide, including supplier grants and free debt advice. The planned Energy Debt Relief Scheme is additional future support; it does not remove the help and protections available now.
- Record: download bills and note when the arrears arose.
- Correct: challenge estimates, wrong readings or a previous occupier’s debt.
- Explain: tell the supplier about disability, health needs or other vulnerability.
- Agree: propose a current-use payment and a separate affordable debt amount.
- Review: ask for the plan to change if income, costs or health change.
Northern Ireland has separate energy-debt rules
The announced Energy Debt Relief Scheme is part of a Great Britain strategy and should not be presented as a UK-wide programme. Northern Ireland has its own energy market and Utility Regulator. No equivalent Northern Ireland write-off scheme is confirmed in the sources checked for this guide.
Existing Northern Ireland protections still matter. The Utility Regulator says a gas or electricity supplier must work with a customer in debt on a repayment arrangement suited to their circumstances and ability to pay. A customer struggling with an existing plan can ask for it to be reviewed and can seek help from the Consumer Council if the arrangement remains unsuitable.
That route is available now and does not depend on Great Britain’s 2027 scheme. Northern Ireland customers should use local regulator and Consumer Council guidance rather than waiting for an Ofgem process that does not govern their supply.
Frequently asked questions
When will the Energy Debt Relief Scheme start?
Government and Ofgem intend to launch it in spring 2027, subject to a further consultation and final design work. It is not open for applications yet.
Will all energy debt be written off?
No. The scheme targets eligible historic debt linked to the 2022–24 energy crisis and customers in genuine financial need. Current and future energy use will still need to be paid for.
Do pensioners automatically qualify?
Not automatically. Pensioners are one of the groups included in the revised policy, but the final eligibility, financial-need and engagement rules have not yet been published.
Which benefits will qualify for the scheme?
The strategy refers to means-tested and disability benefits, but the exact qualifying-benefit list is still to be confirmed through Ofgem’s revised consultation and decision.
Should I stop paying my gas bill while I wait?
No. Keep paying what you can towards current use and contact the supplier for an affordable arrangement. Stopping contact can allow new debt to grow and may make it harder to show engagement.
Does the Energy Debt Relief Scheme cover Northern Ireland?
No Great Britain scheme should be assumed to apply in Northern Ireland. Northern Ireland has separate regulation and existing rights to an affordable supplier repayment arrangement.
Sources
Rates and rules checked on 5 November 2026. Time-sensitive figures should be checked again before use.