By Karim Hammam
UK households burdened by energy debt accumulated during the 2022-2024 crisis could receive targeted relief under a new write-off scheme expected to launch in spring next year, Ofgem and the government have announced.
Targeted support for vulnerable households
The Debt Relief Scheme aims to clear £2.47 billion of debt and arrears for up to 2.4 million customers deemed to have little prospect of repayment. Support will be directed at pensioners, people on disability benefits, and those on means-tested benefits, delivered in a single phase.
Consultation and launch timeline
Ofgem will shortly consult on revised proposals, with the scheme slated to begin in spring. The final amount written off will depend on customers engaging with the programme, including agreeing repayment plans with suppliers to prevent future debt build-up.
Broader reforms included
The one-off scheme also includes reforms to improve the home-moving process to avoid debt accumulation and a review of rules on involuntary prepayment meters to protect vulnerable consumers while allowing suppliers to manage rising debt.
Officials emphasize balance of rights and responsibilities
Ofgem chief executive Tim Jarvis said the scheme would help people "get back on top of their finances" while balancing customer rights with responsibilities to pay. Energy Secretary Miatta Fahnbulleh said the strategy tackles debt costs passed onto all billpayers and supports her priority of energy affordability.
