Energy and Water Arrears in an IVA

Can Gas, Electricity and Water Arrears Go Into an IVA?

Usually, yes. Arrears on gas, electricity and water can normally be included. Your ongoing bills still need paying and are part of your budget.

Last updated: November 2026

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Things to know about IVAs

An IVA is a formal insolvency procedure. It must be approved by your creditors, stays on your credit file for six years, fees are taken from your payments, and debts are only written off if you complete it. It isn’t right for everyone.

Read the key risks

Creditors must approve it. An IVA only goes ahead if creditors holding at least 75% of the debt that is voted agree. Your proposal can be rejected.
Credit file and public register. An IVA stays on your credit file for six years from the start date and is listed on the public Individual Insolvency Register while it runs. Getting credit will be harder.
Spending restrictions and annual reviews. You live on an agreed budget for the length of the IVA (usually 5–6 years). Your income and spending are reviewed each year, and your payment can go up.
Fees. Fees are taken from your monthly payments, so less of what you pay reaches your creditors. How IVA fees work.
Your home. Under the current IVA Protocol, your home isn’t included in the IVA and you won’t be asked to remortgage. If your share of the equity is £10,000 or more, the IVA usually lasts six years instead of five.
If it fails. If you can’t keep up payments the IVA may fail, you would owe the remaining debt again, and the supervisor may petition for your bankruptcy.
Write-off only on completion. Remaining qualifying unsecured debts are only written off if the IVA is completed successfully. Secured debts, court fines, child maintenance, student loans and some other debts can’t be included.
Other options may suit you better. A debt management plan, DRO or bankruptcy may be more suitable. IVAs are available in England, Wales and Northern Ireland only; different solutions apply in Scotland.

Energy and water bills are priority bills, because falling behind can lead to serious consequences. Old arrears, though, are usually treated as unsecured debts in an IVA.

The short answer

Arrears on gas, electricity and water can usually be included.
Ongoing bills must be paid and are included in your IVA budget.
Your supplier may want to move you to a new account or a prepayment meter.
Water companies can’t disconnect a household supply for non-payment.
Ask about social tariffs and hardship funds to reduce costs.

What happens to energy arrears in an IVA?

The arrears become part of your IVA. Your supplier is paid a share of your IVA payments and can’t chase you for that balance. Your account usually continues, or a new one is opened, for future use.

Will my supplier fit a prepayment meter?

Suppliers sometimes suggest a prepayment meter to stop new arrears building up. There are strict rules on involuntary installations. If you’re struggling, contact your supplier and ask about the Priority Services Register if you’re vulnerable. See energy debt help.

What about water?

Water arrears can usually be included as well. Household water supplies can’t be cut off for non-payment in England and Wales, and many water companies offer social tariffs. See water bill debt help.

Common questions

Are energy bills priority debts?

Yes. Current gas and electricity bills are priority bills. Arrears can usually be included in an IVA, but ongoing bills must be paid.

Will my energy supplier close my account in an IVA?

Some do and open a new one. Your supply should continue as long as you pay new bills.

Can water arrears be written off?

Water arrears included in an IVA are written off when the IVA completes. Some water companies also have hardship schemes that may clear arrears.

How IVA Advice Online can help

Every situation is different, and an IVA isn’t right for everyone. We can look at your income, spending and debts with you and set out the debt solutions you could qualify for, including options other than an IVA. To talk it through, get in touch.