UK household energy debt of £500million to be written off

UP TO £500million of household debt is set to be written off as part of a relief scheme, the energy regulator has announced.

- By Henry Saker-Clark

Watchdog Ofgem said it was planning to "reset and reform" the UK's growing pile of energy debt, which adds to everyone's bills.

Currently, an extra £52 is piled on a typical home's annual energy chit under the price cap via a debt allowance to cover bills that are never paid and must be written off.

Ofgem said it expected to write off up to £500million of historic debt to help around 195,000 people.

It confirmed that a final consultation on the first phase of its scheme will be published shortly, with the launch date expected to be early next year.