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Responding to the UK Government and Ofgem’s Energy Debt Circuit Breaker strategy[1] launched today, Heidi Chow, Executive Director at Debt Justice, said:
On the energy relief scheme:
“We are glad the Energy Debt Relief Scheme finally has a renewed delivery timeline and expanded eligibility, after years in limbo. However, five years and two consultations into the energy crisis, people in debt are still waiting for concrete action on energy debt.[2]
“This strategy gives no clarity on how the scheme will be funded, how much debt will be written off, or how people will access it. The scheme must be paid for by energy company profits, not by billpayers. It mustn’t force people onto unaffordable repayment plans to access it. And it must write off billions of pounds, not millions, to make a real dent in the mountain of energy debt.”
On pre-payment meters:
“The proposed loosening of regulations around forced prepayment meters risks putting people onto meters they can’t afford to top up. This will mean more cold and dark homes as people are forced to make unaffordable payments towards unpayable debts. The government must keep protections for vulnerable people in place, so we don’t return to the widespread harms seen in 2023 during the forced pre-payment meter scandal.”
Notes
[1] Ofgem Energy Debt Circuit Breaker available here: https://assets.publishing.service.gov.uk/media/6ae1c7cd7fe45a08a4036e55/energy-debt-circuit-breaker-print.pdf
[2] Ofgem consulted on the DRS in 2024 and published a Statutory Consultation in 2025.
[3] Energy debt in the UK stands at over £5bn according to the latest data from Ofgem: https://www.ofgem.gov.uk/data/debt-and-arrears-indicators. Energy UK estimates put this at £6bn: https://www.energy-uk.org.uk/news/energy-debt-hits-6-billion/
Debt Justice (formerly Jubilee Debt Campaign) is a UK charity working to end poverty caused by unjust debt through education, research and campaigning: https://debtjustice.org.uk/
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