The Newshound

Up to 2.4 million households could see £2.47bn of energy-crisis debts wiped off under a government and Ofgem scheme

Energy bills from suppliers including Southern Electric, EDF Energy and British Gas — the scheme targets £2.47bn in arrears, with Ofgem warning that without intervention more than £5bn of new debt could build up by 2036.
Energy bills from suppliers including Southern Electric, EDF Energy and British Gas — the scheme targets £2.47bn in arrears, with Ofgem warning that without intervention more than £5bn of new debt could build up by 2036.

Eligibility has been expanded beyond earlier drafts to include pensioners, people on disability benefits and those claiming means-tested support. Customers must work with their suppliers on agreements to prevent future arrears for the debt to be cleared.

The scheme is a one-off intervention targeting £2.47bn in arrears built up during the energy crisis of 2022 to 2024.

Government analysis puts the benefit to a typical household at around £130 over the coming decade, by stopping debt costs from being spread across all consumers' bills.

Ofgem says the scheme should prevent more than £5bn of new debt from building up by 2036, describing it as a 'much-needed circuit breaker' for households in hardship.

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