Ofgem listens to calls for help to repay energy debts
Move follows Money Advice Trust-led ‘Help To Repay’ campaign
Posted December 12, 2024
Debt advice charity, the Money Advice Trust, has today welcomed Ofgem’s announcement of proposals for a dedicated scheme to help households struggling to repay energy debt. This follows the charity’s year-long campaign for such a ‘Help to Repay’ scheme to support people with unaffordable energy arrears.
The proposed scheme would deliver on the proposals originally put forward by the Money Advice Trust, supported by 13 other organisations, to offer debt write-off and repayment matching to people trapped in energy debt.
Total energy debt is now at more than £3.8 billion, a rise of more than £2 billion in the last three years.
Energy debt is now the second most common debt among people helped by National Debtline – the Money Advice Trust’s free debt advice service - behind only credit cards, and the average amount owed in energy arrears has increased by 37% in the past year alone, to £1,541.
Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline, said:
“It’s really positive to see that Ofgem has listened to our calls and recognised the need for a dedicated scheme to help people repay unaffordable energy debts, through repayment matching and debt write-off.
“Offering people help to repay in this way could lift millions of people out of debt, and will have wider benefits for consumers and energy suppliers.
“With energy debt at record levels, the scheme is desperately needed. Ofgem must now work closely with suppliers and charities to bring the scheme into effect as soon as possible next year.
“I would urge anyone struggling with their energy bills, or worried about their finances, to contact National Debtline as soon as possible – our advisers are here to help.”
