Energy debt write-off scheme 2027: Who qualifies and could your bills be cleared?

If you're still paying off energy bills from the last few years, there's an announcement today that could make a real difference.

Energy regulator Ofgem has confirmed new plans to help households struggling with debts that built up during the energy crisis, including a scheme that could see some of those debts reduced or written off.

The regulator says up to 2.4 million customers have historical energy debt that could be considered for support, with the new Debt Relief Scheme expected to launch in spring 2027.

Before anybody gets too excited about clearing their energy bill, there's an important distinction. That doesn't mean 2.4 million people will automatically have their debts wiped. Eligibility rules still need to be finalised, and customers receiving help will be expected to engage with their energy supplier.

Still, for people who've spent years trying to catch up with bills that became unaffordable during the energy crisis, this could be a significant development.

Here's what we know so far.

What is the new Ofgem energy debt write-off scheme?

The Debt Relief Scheme is part of a wider package announced by Ofgem and the Government on 29 October 2026 to tackle household energy debt across Great Britain.

It's designed to help people who built up unpaid gas or electricity bills during the energy crisis of 2022 to 2024 and have little realistic prospect of paying them back in full.

The scheme is expected to begin in spring 2027.

Ofgem has confirmed that support will be delivered in a single phase and will be expanded to consider pensioners and people receiving disability benefits, as well as people receiving means-tested benefits.

But it isn't an unrestricted cancellation of energy debts. The regulator is preparing a further consultation on the final details, including how support will be delivered.

Who will qualify for energy debt relief in 2027?

The new scheme is intended for households experiencing genuine financial hardship, with a particular focus on people who accumulated energy debt during the 2022–24 crisis.

Ofgem has confirmed that the groups considered for support will include:

• People receiving means-tested benefits.

• People receiving disability benefits.

• Pensioners who meet the scheme's financial hardship criteria.

The energy billpayer will also need to have qualifying historical debt and meet the final scheme requirements.

Receiving a particular benefit won't necessarily mean every unpaid bill you have will automatically be cancelled.

Ofgem says customers will be expected to work with their energy supplier and take steps to prevent further debt building up, with protections for people facing the greatest difficulties.

Can pensioners get their energy debt written off?

Pensioners are now explicitly included in the groups that the revised scheme intends to support.

That's an important expansion, particularly for older people who might struggle with energy costs but don't necessarily receive the same means-tested benefits as other households.

However, being over State Pension age won't automatically mean all your energy debt qualifies.

The final eligibility rules will determine which customers receive help and how much of their debt may be reduced.

Will people on Universal Credit or disability benefits qualify?

The scheme is designed to include eligible people receiving means-tested or disability-related benefits.

That could include some Universal Credit recipients and people receiving qualifying disability benefits, but the final list of eligible benefits still needs to be confirmed.

It's worth checking the eventual guidance rather than assuming that receiving a benefit guarantees a write-off.

Which energy debts could be written off?

The new scheme focuses on historical energy debt built up during the 2022 to 2024 energy crisis.

Ofgem says approximately £2.47 billion of debt and arrears accumulated during that period could fall within the scope of the scheme.

This doesn't mean that every penny of that £2.47 billion will be written off.

The eventual amount will depend on who qualifies, how much eligible debt they have and whether they meet the conditions for support.

Can you get help with energy debt from 2025 or 2026?

The proposed one-off write-off is specifically aimed at debt from the earlier energy crisis.

If you've fallen behind with your bills more recently, you shouldn't assume those debts will qualify for cancellation under the new scheme.

However, energy suppliers already have responsibilities to support customers who are struggling to pay, and you can ask for help with current debt rather than waiting for the new scheme to start.

Does the scheme mean 2.4 million people will have their energy debts cleared?

No, and this is probably the most important detail in the announcement.

Ofgem estimates that around 2.4 million customers currently have historical debt that could be considered under the scheme.

It's a measure of how many accounts may fall within the scope of the proposals, not a promise that every one will receive a payment or have their debt written off.

Some customers may not meet the final financial hardship conditions. Others could receive a partial reduction rather than have their entire balance cancelled.

For somebody with several years of unpaid energy bills, there's also an important distinction between having qualifying historical debt reduced and having their whole account balance cleared.

Those are not necessarily the same thing.

When will the energy debt write-off scheme start?

Ofgem expects the Debt Relief Scheme to launch in spring 2027.

The regulator will consult on the revised proposals before the final arrangements are introduced.

That means there isn't yet a confirmed date on which eligible customers will have their debts reduced.

It's also too early to provide a final application process or guarantee how individual suppliers will contact customers.

Will you need to apply for the energy debt write-off?

The final application process hasn't been published.

Ofgem has confirmed that customers receiving help will be expected to engage with their supplier, including making arrangements to manage ongoing bills and repayments.

That could mean discussing what you can realistically afford to pay and agreeing a sustainable repayment arrangement.

It doesn't mean you should agree to repayments you know you can't afford simply to try to qualify for future support.

If you're struggling now, the best starting point is to contact your energy supplier and ask what help is available under the existing rules.

And be cautious of emails or text messages claiming you need to pay a fee or enter your bank details to have your energy debt cancelled. There's no confirmed application portal for the new scheme yet.

What other changes is Ofgem making to energy debt rules?

The write-off scheme is only one part of the new strategy.

Ofgem is also looking at how energy debt builds up and how households can avoid unexpected bills in future.

Changes to energy bills when moving house

The regulator wants to improve how customers set up energy accounts when moving home.

Moving can already be expensive without discovering months later that there's an unpaid energy bill or a problem with the account linked to your old property.

The proposed reforms aim to make it easier to establish the correct account and reduce avoidable debt.

New rules around prepayment meters

Ofgem is reviewing the protections that apply when suppliers want to install prepayment meters without a customer's agreement.

The regulator says it wants to maintain safeguards for vulnerable households while ensuring suppliers can respond fairly to unpaid debts.

No final decision has been made on changing those protections.

More support through the Priority Services Register

The Priority Services Register helps energy suppliers identify customers who might need additional assistance because of their age, disability, health or personal circumstances.

Ofgem wants to improve how people are identified and supported, making it easier to receive help without having to repeatedly explain their circumstances.

You can already ask your energy supplier about joining the Priority Services Register.

What should you do if you can't afford your energy bills now?

If you're behind on your energy bills, you don't have to wait until spring 2027 to ask for help.

Energy suppliers have rules they must follow when dealing with customers struggling to pay.

Depending on your circumstances, you can ask your supplier about:

• An affordable repayment plan based on what you can realistically pay.

• A payment break or a temporary reduction in repayments.

• Reviewing your Direct Debit or existing debt repayment arrangements.

• Grants or hardship funds that might help reduce what you owe.

• Additional support if you're vulnerable or using a prepayment meter.

The most useful thing is to explain your situation before agreeing to an arrangement that leaves you short of money for other essentials.

If you've already got a repayment plan that's become unmanageable, you can ask your supplier to review it.

For independent help, Citizens Advice can explain your rights when dealing with energy suppliers, while Money Wellness offers free debt advice.

Is the energy debt write-off separate from the £100 winter energy payment?

Yes. They're two different announcements.

The Government has confirmed a new £100 Household Energy Payment for qualifying properties in council tax bands A to D in England, with payments beginning in January 2027.

That payment is designed to help households with current winter energy costs.

The Debt Relief Scheme, by contrast, is focused on helping eligible customers deal with historical debt from the 2022–24 energy crisis.

So it's possible that somebody may be eligible for one form of support but not the other.

You can read our full guide to who qualifies for the £100 energy payment in 2027.