Who qualifies, when it launches and what 2.4 million customers need to do now
The Ofgem Energy Debt Relief Scheme 2027 is a one-off energy debt write-off for unpaid gas and electricity bills from the 2022 to 2024 energy crisis, and Ofgem announced on 29 October 2026 that it expects to launch it in spring 2027.1 Up to 2.4 million customers could be considered, but not all will be eligible.
- Nothing can be claimed yet, because Ofgem will consult before launch.
- The scheme targets genuine financial need, and the eligibility test is unpublished.
- Households in arrears should contact their supplier about a repayment plan now.
What the scheme covers
The scheme targets arrears from 2022 to 2024, which Ofgem puts at £2.47 billion in total.1 That is about half of the £5.02bn of total electricity and gas debt and arrears in Great Britain in Q2 2026.2
The revised scheme runs as a single phase covering pensioners, people on disability benefits and people on means-tested benefits.1 It does not cut current bills. The SwitchInsights energy debt crisis analysis and the Ofgem state of market 2026 summary cover the wider debt picture.
Who qualifies for Ofgem debt relief? Genuine financial need explained
Ofgem says the scheme is for households in genuine financial need who are unlikely to repay.1 The detailed test is not published, and no income threshold, minimum arrears or benefit list is confirmed.
| Question | Debt Relief Scheme | Warm Home Discount 2026-27 |
|---|---|---|
| What it gives | The scheme writes off crisis-era arrears. | The discount is a £150 electricity bill rebate. |
| Status | Ofgem announced it on 29 October 2026, with launch expected in spring 2027. | The scheme is live, and the qualifying date was 23 August 2026. |
| Who qualifies | Households in genuine financial need qualify, with criteria still to come. | In England and Wales, the £150 is automatic for most households where the bill payer or partner received a qualifying means-tested benefit (Pension Credit, Universal Credit, Housing Benefit or income-related ESA) on 23 August 2026. Scotland has its own rules. |
The Warm Home Discount credits the current bill, whereas the debt scheme looks back at arrears. The SwitchInsights Warm Home Discount 2026-27 guide explains the qualifying date.
Energy debt relief scheme launch date: spring 2027
Ofgem announced the revised scheme on 29 October 2026 and expects a spring 2027 launch.1 Ofgem will consult shortly on the revised proposals.
Ofgem will set the January to March 2027 price cap well before the scheme launches.3 The SwitchInsights Autumn Budget 28 October energy support guide listed debt help as a route to watch.
Legacy debt and the Q1 2027 price cap: the stacked arithmetic
The analysis below is a SwitchInsights illustration, not an Ofgem figure. It takes a dual fuel household in arrears on both accounts at Ofgem's Q2 2026 averages for customers with no repayment plan: £1,872 on electricity plus £1,613 on gas, or £3,485 in total.2 Ofgem has not yet set the January to March 2027 cap, so the forecasts can still move.3
E.ON Next's latest forecast is £2,183, dated 26 October 2026, which is £460 above the £1,723 cap in force now on the revised benchmark.6 Cleared in one year, that stack comes to £5,668, whereas three years adds £1,162 a year.
| Cap scenario | Annual bill | Arrears a year over 3 years | Combined a year |
|---|---|---|---|
| Q4 2026 cap in force now (revised 2026 typical use) | £1,723 | £1,162 | £2,885 |
| Cornwall Insight Q1 2027 forecast, 30 September 2026 | £1,999 | £1,162 | £3,161 |
| E.ON Next Q1 2027 forecast, 26 October 2026 | £2,183 | £1,162 | £3,345 |
A write-off removes the arrears column and leaves the bill column untouched. At the E.ON Next forecast, it would cut the combined figure from £3,345 to £2,183 a year.
What to do about energy debt now
- Contact your supplier this week. Ask for a repayment plan, because Ofgem expects customers receiving support to engage with their supplier.
- Keep current bills paid and keep benefit award letters.
- Check your direct debit. The SwitchInsights energy direct debit overcharge guide explains the 2026 rules.
- Get free debt advice. Citizens Advice offers free help.
Households not in arrears can compare deals on the SwitchPilot tariff tracker.
How SwitchInsights analysed this: the scheme details come from Ofgem's 29 October 2026 press release, combined with Ofgem, Cornwall Insight and E.ON Next figures, each labelled with its basis. Where Ofgem has not published a rule, the article says so.