The UK energy regulator Ofgem is considering a proposal to cancel up to £500 million in unpaid energy debt owed to suppliers, as part of efforts to tackle a growing energy affordability crisis.
Under the plans, households on means-tested benefits with energy arrears exceeding £100 — accumulated between April 2022 and March 2024 — could become eligible for partial or full debt relief.
Those receiving support would still be expected to contribute towards their debt or ongoing energy costs where possible. Customers unable to do so would be required to work with a registered debt charity to help manage their finances.
The move comes as Ofgem faces mounting pressure over the UK’s soaring energy debt burden, which reached a record £4.4 billion by the end of June.
According to data from the Office for National Statistics, a record number of British households have been unable to pay energy bills by direct debit this year due to insufficient funds, highlighting the financial strain on millions of consumers amid persistently high energy prices.
