StepChange welcomes Ofgem’s Energy Debt Relief Scheme but urges action on energy affordability

^{30 October 2025}

StepChange Debt Charity has welcomed Ofgem’s plan to tackle the growing crisis of energy debt through a new Debt Relief Scheme (DRS). The regulator has confirmed the first phase of the scheme will write off up to £500 million of historic debt built up during the energy crisis, with total energy debt across the UK now reaching £4.4 billion.

Ofgem has stated a final consultation on the first phase of the DRS will be published soon. Alongside the scheme, StepChange would like to see more action to address energy affordability, alongside improvements to energy debt collection standards. 

Adam Butler, Public Policy Manager at StepChange, said:

"Among our clients seeking help from StepChange, energy debt has increased to unprecedented levels – with average energy arrears having risen by 34% over the last two years alone. For people on the lowest incomes, fuel poverty will be a daily lived experience this winter. Our recent polling reveals over 12 million people across the UK are worried about being able to pay their energy bills over the next 6 months. Keeping up with existing bills and other financial commitments whilst repaying energy debts has become unsustainable for many.

"Intervention to address energy debt is long overdue, and we welcome Ofgem’s proposals for a Debt Relief Scheme. However, households have seen another price cap rise this month, and while writing off historic debt is vital, it doesn’t address how expensive bills are now. Alongside the scheme, we need targeted, long-term measures that properly protect people in vulnerable circumstances from high energy costs and poor debt collection practices."

Notes to editors

1. All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 2,364 adults. Fieldwork was undertaken between 4th - 5th September 2025. The survey was carried out online. The figures have been weighted and are representative of all UK adults (aged 18+).
2. Please contact Ofgem’s press office for any information about the Debt Relief Scheme (DRS).