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Ofgem Unveils £500 Million Debt Relief for Households

10/30/2025

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Summary

Story summary

The Office of Gas and Electricity Markets (Ofgem) announced a Debt Relief Scheme that could write off up to £500 million of energy debt for 195,000 households.
It targets means-tested households with debts over £100 accrued between April 2022 and March 2024, and suppliers will contact eligible households.
Unpaid debts will still appear in all consumers’ bills, adding about £5 per year from 2027/28.

History

Historical Context

In 2023, the UK government launched a Debt Relief Scheme to assist 195,000 households struggling with energy debts, reminiscent of the 2008 financial crisis when the Bank of England reduced interest rates to 0.5%. This initiative highlights ongoing economic challenges, with a projected £5 increase in consumer bills starting in 2027, reflecting the persistent burden of energy costs on households.

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Story summary

The Office of Gas and Electricity Markets (Ofgem) announced a Debt Relief Scheme that could write off up to £500 million of energy debt for 195,000 households.
It targets means-tested households with debts over £100 accrued between April 2022 and March 2024, and suppliers will contact eligible households.
Unpaid debts will still appear in all consumers’ bills, adding about £5 per year from 2027/28.

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