- Struggling households could have their energy debts wiped early next year under a new Debt Relief Scheme announced jointly by the government and Ofgem.
- The targeted scheme aims to address £2.47 billion in crisis-era arrears, with up to 2.4 million eligible consumers, including pensioners and those on means-tested or disability benefits.
- To receive debt relief, customers must collaborate with energy suppliers on agreements to manage future bills and prevent further arrears.
- Government analysis suggests the strategy could save a typical household around £130 over 10 years and prevent over £5 billion of new debt by 2036.
- Ofgem will launch a formal consultation shortly ahead of the spring rollout, alongside reforms to home-moving rules and involuntary prepayment meters.
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