Ofgem's Energy Debt Relief Scheme: Where It Stands and Help Now

Ofgem's energy Debt Relief Scheme has not started yet. Its statutory consultation on phase 1 closed in December 2025, and on 15 October 2026 Ofgem's consultation page still read "Closed (awaiting decision)", with no launch date. One blocker has gone: the regulations that let benefit data be shared with energy suppliers for the scheme came into force on 18 September 2026. If you are in energy debt now, the help further down is open today. Facts below were checked on 15 October 2026.

Where does the Debt Relief Scheme stand?

• 30 October 2025: Ofgem announced that a scheme to tackle debt built up during the energy crisis could help around 195,000 customers by writing off up to £500 million, with phase 1 expected to launch in early 2026.
• 6 November 2025: Ofgem published its statutory consultation on phase 1, with draft licence changes and delivery guidance for suppliers. It proposed launching in early 2026, subject to legislation allowing data sharing between the Department for Work and Pensions and suppliers.
• December 2025: the consultation closed. Ofgem said it expected to publish its decision in January 2026.
• 3 July 2026: GOV.UK published the government response on widening the Digital Economy Act's information-sharing powers to support a Debt Relief Scheme.
• 18 September 2026: The Digital Government (Disclosure of Information) Regulations 2026, SI 2026/1039, came into force, the day after they were made. They add a debt relief requirement imposed by Ofgem to the fuel poverty measures for which information can be disclosed to gas and electricity suppliers, and they extend to England and Wales and Scotland.
• 15 October 2026: Ofgem's page still showed the consultation as awaiting a decision, with no launch date published.

So the legal route for data matching now exists, but Ofgem has not yet confirmed the licence changes or a start date.

Who is the scheme meant for?

Under Ofgem's November 2025 proposals, phase 1 would cover domestic customers who:

• hold £100 or more of eligible debt, built up between 1 April 2022 and 31 March 2024;
• are identified by the Department for Work and Pensions as receiving means-tested benefits;
• meet an engagement condition: a payment in their most recent billing period (prepayment top-ups and a live Direct Debit count), or agreeing to a repayment plan, to pay through Fuel Direct, or to a referral to a debt advice charity.

Relief would be capped at the eligible debt you held when the consultation was published, on 6 November 2025. Suppliers would identify eligible customers automatically through data matching, so you would not apply. Closed accounts would only qualify where the customer is still working with the supplier to repay the debt.

Ofgem estimated that phase 1 covers about a third of all customers with eligible debt. It plans a phase 2 for people in genuine payment difficulty who are not on means-tested benefits, based on an income and expenditure assessment, with its own statutory consultation first.

The costs would be recovered through network charges, which Ofgem said means a short-term increase in costs for consumers.

What should you do now?

Do not wait for the scheme. It has no start date, and some of its proposed conditions reward engaging with your supplier now.

1. Talk to your supplier. Ofgem says you can ask it to agree a payment plan, a payment break or a reduction, to review your payments and debt repayments, and to give you access to hardship funds.
2. Pay what you can. Under the proposals, a payment in your latest billing period, or an agreed repayment plan, is one of the routes to relief.
3. Get free debt advice. Ofgem points to MoneyHelper, and to Breathing Space in England and Wales or a debt moratorium in Scotland, which stop creditors taking action while you get advice.
4. Call an energy adviser. Ofgem lists Citizens Advice on 0808 144 8844 in England, Energyadvice.scot on 0808 196 8660 in Scotland and Advicelink Cymru on 0800 702 2020 in Wales.

Thinking of switching to a cheaper deal while you owe money? Our guide to switching energy supplier when you owe money covers the 28-day rule and the £500 per fuel prepayment limit.

Which supplier hardship funds can help?

Citizens Advice lists these supplier funds for customers in energy debt:

Three points from Citizens Advice before you apply:

• If your supplier is not listed, contact it directly to ask what extra support it offers.
• The British Gas Energy Trust gives grants to anyone, not only British Gas customers, but you need debt advice first.
• E.ON Next and EDF ask you to show a budget sheet completed with an adviser approved by the Financial Conduct Authority.

Some suppliers have added money this winter. EDF said on 13 October 2026 that it is putting £6 million into debt relief and debt-matching support through its Customer Support Fund, as part of £30 million of support for vulnerable customers in 2026/27.

What about Northern Ireland?

The data-sharing regulations extend to England and Wales and Scotland, and the scheme is Ofgem's, which regulates energy in Great Britain. In Northern Ireland the Utility Regulator regulates electricity and gas, so ask your supplier what support it offers.

Where to find more help this winter

Our winter energy bill help guide puts every 2026/27 scheme, amount and date in one table, and our guide to crisis support to heat your home covers council funds in each nation. We will update this page when Ofgem publishes its decision.

Where Taupia fits

Taupia does not apply for debt relief, grants or hardship funds for anyone. It keeps your energy, broadband, mobile and water bills in one place, compares tariffs against your own usage and switches only once you approve. It is free. If you are struggling to pay now, contact your supplier and a free debt adviser first.