Target households
Around 195,000
Minimum debt
£250 with current supplier
Application
Automatic via DWP data matching
DEBT SUPPORT · 6 min read
Ofgem Debt Relief Scheme 2026: what it is and who qualifies
This guide explains the Ofgem Debt Relief Scheme launched in 2026. Educational information only. Confirm your eligibility directly with Ofgem or your energy supplier.
At a glance
Scheme summary
What it does
What the scheme does
The Ofgem Debt Relief Scheme uses funds recovered from energy companies during the 2021 to 2023 energy crisis to write off energy debt for households who meet specific eligibility criteria. Ofgem launched it in early 2026, targeting approximately 195,000 households across Great Britain.
The scheme does not require you to apply in the traditional sense. Ofgem identifies eligible households through data matching with the Department for Work and Pensions (DWP). If you qualify, your energy supplier contacts you directly.
Debt written off under the scheme does not need to be repaid. It is cancelled, not deferred.
Eligibility
Who qualifies
The scheme targets households that meet all three of the following criteria:
- You have outstanding energy debt of at least £250 with your current supplier.
- You receive at least one means-tested benefit. These include Universal Credit, Pension Credit (Guarantee Credit), Income Support, income-related Employment and Support Allowance, income-based Jobseeker's Allowance, Housing Benefit, and Child Tax Credit.
- You have been in debt with your current supplier for at least 12 months.
You do not need to contact Ofgem or your supplier first. Ofgem matches eligible households through government benefit records and instructs suppliers to apply the debt relief.
If you believe you qualify but have not heard from your supplier, contact them directly. You can also contact Citizens Advice on 0808 223 1133 for help checking your eligibility.
Amounts
How much debt can be written off
The scheme does not cap the amount written off at a fixed figure. Ofgem's guidance states that debt should be written off in full for qualifying households where the total debt does not exceed a reasonable threshold set by the supplier.
For households with very large debts, suppliers may apply partial relief. Ofgem monitors this and can direct suppliers to apply further relief.
The average energy debt among those targeted by the scheme is approximately £1,500 according to Ofgem's published estimates.
If you qualify
What happens if you qualify
Your supplier writes to you confirming the debt has been removed from your account. The letter should arrive within 90 days of Ofgem identifying you as eligible.
Your credit record is not affected by the debt relief. Energy debt written off under this scheme is treated differently from standard debt forgiveness and Ofgem has confirmed it should not appear as a negative marker on credit files.
Your energy supply continues uninterrupted. The scheme does not require any change to your tariff, payment method, or supplier.
Other options
What to do if you have energy debt now
The Debt Relief Scheme helps a specific group of households Ofgem has identified. If you have energy debt that the scheme does not cover, you still have options.
Contact your supplier immediately and ask for a payment plan based on what you can actually afford. Suppliers are legally required by Ofgem to agree a sustainable repayment plan. They cannot demand full payment immediately.
Ask your supplier about their hardship fund. Most large suppliers offer emergency grants for customers in financial difficulty. These are separate from the Ofgem scheme and available now.
Other support
How it relates to other support
The Debt Relief Scheme works alongside other support, not instead of it. A household receiving debt relief can still claim the Warm Home Discount, apply for ECO4 insulation improvements, and use their supplier's hardship fund.
If your debt is cleared under the scheme, your monthly payment plan may reduce or end. Your supplier should contact you to confirm new arrangements. Check that your ongoing direct debit or payment method reflects your actual consumption going forward to avoid debt accumulating again.
Use the support finder to check all schemes you may qualify for →FAQ
Ofgem Debt Relief Scheme questions
Do I need to apply for the Ofgem Debt Relief Scheme?
No. Ofgem identifies eligible households through data matching with DWP benefit records. Your supplier contacts you if you qualify. If you believe you should qualify but have not heard anything, contact your supplier or Citizens Advice.
Will the debt relief affect my credit score?
Ofgem has confirmed that debt written off under this scheme should not appear as a negative marker on your credit file. It is treated differently from standard debt forgiveness.
My debt is less than £250. Does the scheme help me?
The scheme targets households with at least £250 of energy debt. If your debt is below that threshold, your supplier's hardship fund may still help. Contact your supplier directly and ask about emergency support options.
I am not on benefits. Does the scheme apply to me?
The current scheme requires receipt of at least one means-tested benefit. If you do not receive any qualifying benefit, the scheme does not apply to your debt. Your supplier's hardship fund does not require benefit receipt. Contact your supplier to ask about that separately.
My supplier has changed since I built up the debt. Does the scheme still apply?
The scheme applies to debt held with your current supplier. If you switched suppliers while in debt, your old supplier may have passed the debt to a debt collection agency. Contact Citizens Advice for guidance on debts held by previous suppliers.
How long will it take for my debt to be removed?
Ofgem's guidance gives suppliers up to 90 days from identification to apply the relief. Your supplier should write to you confirming the amount removed. If you have not heard within three months of the scheme being announced, contact your supplier.
Key terms explained
- Debt relief: Cancellation of a debt. Under this scheme, the amount owed is written off entirely rather than restructured or deferred.
- Means-tested benefit: A benefit where eligibility depends on your income and savings level.
- DWP: Department for Work and Pensions. The government department that administers most UK benefits.
- Ofgem: Office of Gas and Electricity Markets. The independent energy regulator for Great Britain.
- Hardship fund: A fund operated by individual energy suppliers to provide emergency grants to customers in financial difficulty. Separate from the Ofgem scheme and available to a broader group.
Check the other support you may be entitled to
Use the support finder to see which schemes may apply to your household, then read the relevant guides for application steps.
Use the support finderWhile you are reviewing your energy costs, it may also be worth checking whether a cheaper tariff is available at your postcode. Compare at Utility Matchmaker →