Citizens Advice response to Ofgem’s technical working paper on the Debt Relief Scheme

Citizens Advice welcomes the opportunity to respond to Ofgem’s working paper on the proposed Debt Relief Scheme (DRS). The scheme has the potential to deliver significant benefits for both consumers and suppliers by reducing debt in the energy market, supporting vulnerable households, and improving relationships and trust between consumers and their suppliers.

We broadly support the new objectives outlined by Ofgem in the working paper and recognise that some of our recommendations have been taken into consideration, such as a phased approach to implementation to reach those in need as soon as possible. While the scheme is moving in the right direction, we are still concerned that there are a number of unanswered questions and believe we need greater clarity on eligibility and engagement to determine consumers who will qualify for the scheme. 

We are also concerned about the lack of information on the second phase of the scheme. We understand that it will be more complex, and that is why we urge Ofgem to begin consulting on this phase as soon as possible, to engage with stakeholders and suppliers to start working through complications and prevent any further delays. We are currently mobilising our new energy debt advice service which over time will significantly increase access to FCA-accredited debt advice. We are keen to ensure that wherever possible this service can support good consumer outcomes from the Debt Relief Scheme. 

The energy crisis is not over for millions of people. Energy prices are still volatile and higher than before the energy crisis. Our most recent survey found that 38% are worried about paying their energy bills this winter, and 6% are in debt*. Any delay in introducing the scheme increases the risk of negative consequences for consumers, such as debt enforcement, prepayment meter disconnection, energy rationing, and deepening debt. These outcomes could harm people’s physical and mental health and further damage household finances. 

To ensure that the DRS is a one-off intervention that delivers meaningful debt relief, the Government needs to tackle the problem of energy affordability. In our view, this means that the debt relief scheme should be accompanied by long-term targeted bill support and further action to improve the energy efficiency of homes**.

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*  Polling data is based on an online, nationally-representative poll of 4,270 GB energy bill paying adults conducted by Yonder Data Solutions for Citizens Advice. Fieldwork was conducted between the 31st July and 6th August 2025. 

 ** Citizens Advice, Frozen in place: Why the Government needs to move quicker to address energy affordability, Feb 2025