Struggling with energy bills? Here’s what the government’s new debt plan could mean for you

The government has announced plans to tackle household energy debt, including a new scheme expected in spring 2027.

But you don’t have to wait for that help if you’re struggling to pay your bills now.

From contacting your energy supplier to checking whether you can get a grant, here’s what the new plans could mean for you and where you can turn for support today.

What is the government doing about energy debt?

The government has published a policy paper called the Energy Debt Circuit Breaker.

Developed with energy regulator Ofgem, it sets out plans to help households tackle existing energy debt and stop more people from falling behind on their bills.

And there's definitely need for support. According to Ofgem, total household energy debt reached £4.79bn between January and March, up 5% on the previous quarter.

The government and Ofgem want to tackle the problem in four main ways:

• Stop energy debt from growing: help you get support before your arrears become unmanageable.
• Make paying your bills easier: review payment and billing systems to remove barriers that make it harder for you to pay.
• Improve communication: help you get the information and support you need from your energy supplier.
• Improve support across the energy sector: encourage the government, Ofgem and energy companies to work together to help households in debt.

One of the main proposals is a new debt relief scheme, which is expected to launch in spring 2027.

Could you get help through the new debt relief scheme?

The proposed debt relief scheme (DRS) is designed to help households facing serious financial difficulties with energy debt linked to the 2022 - 2024 energy crisis.

It’s intended for people who have little realistic chance of repaying what they owe.

The scheme has been redesigned to make it simpler and reach more people who need help. The plans include:

• One application phase: the scheme will operate in a single phase to simplify how it’s delivered.
• Wider eligibility: the plans extend eligibility to people receiving means-tested benefits, disability benefits and pensioners.
• Support to help you manage future bills: the scheme will encourage you to engage with your energy supplier, including through repayment plans and smart prepayment arrangements, while protecting vulnerable customers.

The aim is to reduce older energy debt, help you manage your future bills and prevent your debt from building up again.

When will the scheme open?

The government and Ofgem expect the scheme to launch in spring 2027. Further consultation is expected later in 2026, with a final decision due in early 2027.

The scheme isn’t yet open, and the final eligibility rules have not been confirmed.

So, if you’re struggling with energy debt now, it’s important to explore the help already available rather than wait for the new scheme.

What can you do if you’re in energy debt now?

If you’re behind on your energy payments, worried about falling into debt or unsure how you’ll afford to heat your home, there are steps you can take to get help.

Contact your energy supplier

If you’re struggling to pay your bills, contacting your supplier is one of the most important things you can do.

You don’t have to wait until you’ve missed a payment. If you think you might fall behind, get in touch as soon as you can and explain your circumstances.

Depending on your situation, your supplier may be able to:

• set up a repayment plan you can afford
• give you more time to pay
• review your monthly direct debit or debt repayments
• offer a payment break or temporarily reduce your payments
• tell you about hardship funds or other financial support

Be honest about what you can afford. If a proposed repayment plan would leave you short of money for essentials, explain this and ask whether the payments can be reduced.

Check whether you can get an energy grant

If you’re in energy debt, you may be able to get help from an energy grant or hardship fund.

Some energy suppliers offer financial support to eligible customers who are struggling with their bills. Depending on the fund’s rules and your circumstances, you could get help towards some or all of your outstanding debt.

Here are some funds worth checking:

• British Gas Energy Trust (open to everyone, not just British Gas customers) 

• Scottish Power Hardship Fund 

• Ovo Energy Fund 

• E.ON Next Energy Fund 

• EDF Energy Customer Support Fund 

• Octopus ‘Octo Assist Fund’ 

• Boost Power Energy Bills Support Fund 

Each fund has its own eligibility rules, and funding may not always be available. Check the latest application requirements before applying.

Even if your supplier isn’t listed, contact them and ask what help they can offer.

Get a fuel voucher if you can’t afford to top up

If you use a prepayment meter and can’t afford to top up, you may be able to get a fuel voucher to help you keep your gas or electricity supply running.

You can contact your local council, Citizens Advice or a local support organisation to ask what help is available in your area.

If you qualify, a voucher can provide credit for your meter. Availability and eligibility vary, so ask for help as soon as possible if you’re running low on energy.

Check whether you can join the priority services register

If you need extra support from your energy supplier, you may be eligible for the priority services register (PSR).

You could qualify if you:

• have a disability or health condition
• are of state pension age
• are pregnant or have a young child
• need extra help communicating with your supplier or accessing essential services

Joining the register is free. Contact your energy supplier to find out whether you qualify and what extra support you could receive.

Find help to make your home warmer and cheaper to heat

If your home is expensive to heat, you may be able to get help with insulation, heating upgrades or other energy-efficiency improvements.

The support available depends on where you live, your income and the type of property you have.

Schemes worth checking include:

• Energy company obligation  

• Great British insulation scheme 

• Home upgrade grant (for homes not using mains gas) 

• Boiler upgrade scheme 

Not every household will qualify, and some schemes have limited availability. Check the latest eligibility rules before making plans.

What extra help could you get this winter?

You may also be able to get help through wider government support schemes.

Warm home discount 

If you qualify for the warm home discount, you’ll get £150 off your electricity bill. Your supplier applies it automatically. 

Winter fuel payment 

If you're over state pension age, you could get £100 - £300 to help with heating with the winter fuel payment.  

Help in your part of the UK 

• Scotland: Home energy Scotland offers free advice and grants. 

• Wales: Nest scheme helps with insulation and energy upgrades. 

• Northern Ireland: Check with your local council for available energy grants. 

Want to save more? 

Getting help with energy debt is important, but there are also small changes you can make at home to help reduce your energy use.

From closing the curtains, to even cleaning your fridge, we’ve listed 50 smart energy-saving tips to help you save on energy and reduce your bills.  

And, if you think you might be missing out on any benefits, use our benefits calculator to check what you could be eligible for.