Up to 2.4 million energy customers could be considered for help with unpaid gas and electricity bills under new plans announced by Ofgem on 29 October 2026.
The scheme could see some debts built up during the energy crisis between 2022 and 2024 written off, with help expected to start in spring 2027.
But not everyone will qualify, and there’s no way to apply just yet.
If you’re struggling to pay your energy bills now, you don’t need to wait until next year to ask for help.
Who could qualify for energy debt relief?
The government says the scheme is intended to help households where the person responsible for the energy bill:
- receives means-tested benefits, such as Universal Credit
- receives disability benefits
- is a pensioner
They must also have energy debt linked to the 2022 to 2024 energy crisis and be willing to work with their supplier to manage what they owe.
Ofgem says the help will be aimed at people in genuine financial difficulty who have little realistic chance of clearing their debts.
Being a pensioner or receiving benefits won’t automatically mean your debt is wiped.
The final eligibility rules haven’t been confirmed yet, with Ofgem planning a further consultation before the scheme starts.
Will 2.4 million customers have their debts wiped?
Not necessarily. Ofgem estimates that up to 2.4 million customers have old energy debt that could be considered for help under the scheme.
However, that doesn’t mean 2.4 million people will receive support.
Some customers won’t meet the final eligibility rules, while others may not complete the steps needed to receive help.
Those who do qualify will be expected to work with their energy supplier or a debt adviser to agree affordable repayments and help stop further debt building up.
At the moment, there’s no confirmed figure for how many customers will actually have their debts written off.
Which energy debts could be cleared?
The scheme will target unpaid household gas and electricity bills built up during the energy crisis between 2022 and 2024.
Ofgem says debts and arrears from that period total around £2.47 billion.
That doesn’t mean the full £2.47 billion will be written off.
The actual amount cleared will depend on how many customers qualify and take part in the scheme.
The announcement doesn’t cover newer debts built up outside the crisis period. The exact dates and whether there’s a minimum amount of debt needed to qualify still need to be confirmed.
When will the debt relief scheme start?
Ofgem expects the scheme to launch in spring 2027.
That’s the planned start, rather than a guaranteed date.
The regulator will consult on the updated proposals before confirming how everything will work.
Unlike earlier proposals that involved separate stages, the revised scheme is now planned to run in a single phase.
This means pensioners and people receiving disability benefits will be included alongside those on means-tested benefits, subject to the final rules.
Do you need to apply?
There’s no confirmed application process for the new scheme yet.
Ofgem hasn’t explained whether eligible customers will be contacted automatically or whether they’ll need to apply.
For now, there’s nothing you can apply for under the new Debt Relief Scheme.
Be careful if you receive an unexpected text or email asking for personal or bank details to sign up. Check with your energy supplier using its official contact details.
Skint Dad says:
Getting old energy debt cleared could make a real difference, but the 2.4 million figure doesn’t mean everyone will get help.
My concern is that people may wait until next year instead of asking for support now.
If you’re struggling, speak to your supplier today.
What should you do if you’re struggling with energy debt now?
You don’t need to wait until spring 2027 to get help.
If you’re finding it difficult to pay your gas or electricity bills, there are a few things you can do now.
1. Speak to your energy supplier
Tell them you’re struggling and ask for an affordable payment plan.
Ask how much of your monthly payment covers the energy you’re using now and how much goes towards paying off old debt.
If the repayments are too high, explain what you can realistically afford each month and ask them to review the amount.
2. Ask about extra help
Some suppliers offer hardship funds, grants, reduced repayments or temporary payment breaks.
Ask what’s available and whether you qualify. A payment break isn’t guaranteed, but your supplier should consider your circumstances.
3. Get free debt advice
If you’re struggling with several bills or can’t agree a payment plan, you can get free help from Citizens Advice.
They can help you work out what you can afford and what to say to your supplier.
4. Check what other energy support you could get
You might qualify for help through the Warm Home Discount or a scheme offered by your energy supplier.
Ofgem’s guidance explains what support you can ask for if you’re struggling to pay.
If you’re behind on several bills and aren’t sure where to start, our guide to what to do if you can’t pay your bills explains the help available.
The new debt relief scheme is separate from the £100 Household Energy Payment starting in January 2027, which has different eligibility rules.
You can read the full Ofgem announcement from 29 October 2026 and the government’s explanation of who could qualify.
We’ll update this article when the final rules and application arrangements are confirmed.
