Energy debts reach £5bn. A scheme to reduce old arrears is due to start in spring 2027

04.11.2026, 17:54 (UK time)

News

The energy regulator Ofgem and the government have presented a “circuit breaker” strategy intended to break the cycle of energy debt. According to Ofgem, electricity and gas debt and arrears in Great Britain reached £5bn in the second quarter of 2026. A one-off Debt Relief Scheme is to reduce part of the debt from 2022–2024, which totals £2.47bn. The scheme is due to start in spring 2027.

Analysis

Ofgem says about 2.4 million customers have historical debt, but not all of them will receive help. Support is to cover, among others, pensioners, people on disability benefits and those on means-tested benefits. The plan also includes easier account set-up when moving home, a review of the rules on involuntary prepayment meters, a review of the most expensive payment method (standard credit) and of the Priority Services Register. According to the government, a typical household could save about £130 over 10 years.

What it means

This is not a write-off of all debts. The details – who exactly will get help and how much – are not yet known. Ofgem plans to consult on the new rules.

Risk

When news of “debt write-offs” appears, scammers send texts and emails with a link to an “application”. The scheme is not running yet – nobody should be asking you for card details or a fee to take part.

What to do

• If you are in arrears, contact your energy supplier and agree a repayment plan you can realistically keep to.
• Get free debt advice (e.g. Citizens Advice).
• If you have a disability, are a pensioner or have young children, ask to be added to the Priority Services Register.
• Follow official Ofgem announcements – you will have to wait until spring 2027 for the scheme to start.

How to read this

The figures come from Ofgem’s announcement of 29 October 2026. Details of the scheme may change after the consultation.

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Sources: Ofgem – “circuit breaker” strategy (29.10.2026), Ofgem – news.