Energy Debt Write Off Scheme UK: Who Qualifies, When It Starts, and What to Do Now

By Emily Harrington | Published: 29 October 2026 | Last checked: 29 October 2026

This is information only and not personal financial advice.

If you are in energy debt, this is the announcement to watch, but do not wait for it to fix a bill you cannot pay now. The scheme is for old debt from the energy crisis, it starts next spring, and the final rules are not published yet. Help from your supplier and debt advice is available now, and that is still the first step.

What is the energy debt write off scheme?

The Debt Relief Scheme is a one-off plan from Ofgem and the Government to reduce energy debt built up during the 2022 to 2024 energy crisis. It is part of a wider strategy called Relief, Repayment and Reform, which aims to help households in hardship reset and regain control of their bills.

Ofgem says total electricity and gas debt and arrears in Great Britain reached £5 billion in the second quarter of 2026. The scheme targets debt and arrears from 2022 to 2024, totalling £2.47 billion. The actual sum written off will depend on customers engaging with the scheme, including working with suppliers or debt advisers on repayment plans they can afford and stick to.

Who qualifies for the energy debt write off?

GOV.UK says you may qualify if the energy billpayer in your household is on means-tested benefits, disability benefits, or is a pensioner, and you built up debt during the energy crisis of 2022 to 2024, provided you take steps to re-engage with paying your debt.

Ofgem adds an important limit: up to 2.4 million customers currently have eligible debt which could be considered for support, but not all will be eligible or receive support. Do not read the 2.4 million figure as a promise that every person in that group will have debt written off. The final design, including exactly who gets support and how much, is still to be consulted on.

When does the scheme start, and is there an application yet?

The scheme is scheduled to launch in spring 2027, and Ofgem says it will consult shortly on the revised proposals. There is no application form yet, and no supplier should be asking you to pay to join a list for it.

That timing matters. If you are struggling now, waiting until spring 2027 without talking to your supplier could make the debt worse. Contact your supplier, ask about a repayment plan you can afford, and get free debt advice if you are not sure what to do next.

What should you do now, in this order?

1. Do not stop paying what you can. The scheme is for old crisis debt, and support depends on re-engaging with your supplier, not ignoring the bill.
2. Contact your supplier and tell them you are struggling. Ask for a repayment plan based on what you can afford, and ask if you should be on the Priority Services Register.
3. Get free debt advice if the debt feels unmanageable, before you agree to a plan you cannot keep.
4. Keep your supplier details and debt letters together, so you can show which debt is from 2022 to 2024 when the final scheme rules are published.
5. Check the Budget hub for the other energy help announced at the same time, including the £100 Household Energy Payment and the plan to remove gas standing charges, in our Autumn Budget 2026 guide.

What it means for your money

For a household that qualifies, the scheme could clear old crisis debt and give a fresh start. For everyone else, the wider strategy could save a typical household around £130 over the next 10 years, by avoiding debt costs being added to all bills.

The trap to avoid is treating the announcement as a reason to do nothing. The scheme is one-off, it is for a specific period of debt, and it requires engagement with your supplier. A plan you can keep now is worth more than a hope of a write-off next spring.

FAQ: energy debt write off scheme

Will all my energy debt be written off?

No, not on what has been announced so far. The scheme targets debt and arrears built up between 2022 and 2024, totalling £2.47 billion, and Ofgem says not everyone with eligible debt will receive support. Debt from other periods, and the final amount for each household, will depend on the final design after consultation.

Do I need to apply now?

No. There is no application yet. Ofgem will consult shortly on the revised proposals, with the scheme expected to launch in spring 2027. If anyone contacts you asking for payment to apply, do not pay and check with your supplier first.

What if I am not on benefits and not a pensioner?

On the GOV.UK wording, the eligible group is households where the billpayer is on means-tested benefits, disability benefits, or is a pensioner. If you fall outside that group, you are not in the announced group, but you can still ask your supplier for a repayment plan and get free debt advice. The final consultation could still change the details, so watch for the final rules.

What if my energy debt is from after 2024?

The announced scheme targets 2022 to 2024 debt. Debt built up after that period is not in the announced target, so do not assume it will be written off. Talk to your supplier about a repayment plan for the full balance, and keep records of when each part of the debt built up.

Where can I follow this until spring 2027?

Follow our UK Markets Daily briefing and our Money Weather page for updates when Ofgem publishes the consultation and the final design. We will update this post when the final rules are known.

Sources

• Ofgem: New circuit breaker strategy launched to help households get out of energy debt, 29 October 2026.
• GOV.UK: What the Autumn Budget 2026 means for your energy bills, published 28 October 2026.

Last checked: 29 October 2026. The final design of the Debt Relief Scheme is still to be consulted on by Ofgem, so eligibility and amounts may change.