British Gas will offer grants of between £250 and £750 to struggling customers this winter. The company's boss said it will give 10 per cent of its profits to households who are struggling to pay their bills.
Centrica boss Chris O'Shea committed to donating £12million of British Gas profits this autumn and and a further 10% every six months for the duration of the energy crisis.
It could see £60million go towards helping the energy giant's poorest customers. Mr O’Shea said: “We don’t have a silver bullet and we know this fund can’t reach everyone. But I believe it can help make a real difference for those who really need our support.”
British Gas is the first energy firm to dip into its own pocket to help amid the soaring cost of living crisis, The Mirror reports. The grants of between £250 and £750 will be targeted to the tens of thousands of customers British Gas has identified will be in financial distress as a result of soaring energy costs.
Regulator Ofgem will announce the price cap for October on Friday.
It comes as households on prepayment meters are seeing up to 90% of their gas top-ups going on repaying debt as they head into the winter months, figures show.
Almost 300,000 households had their gas and electricity prepayment meters set to recover debt when they top up in the first quarter of this year, according to Ofgem data obtained via a Freedom of Information request.
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The data collected by debt help website DebtBuffer.com shows that there has been a 43 per cent jump in gas prepayment customers having their meters set to repay debts over the two years to the first quarter of this year, while there has been a 30 per cent increase in electricity prepayment customers repaying debt over the same period.
The average household could be paying £6,500 a year for energy from April, experts say.
Jessica Taplin, CEO of British Gas Energy Trust said: ‘We’re delighted to receive this financial boost from British Gas which will enable us to support tens of thousands of households in need this winter and beyond.
"As a charitable trust we’re helping thousands of people every month who are struggling with bills including energy costs - we know that many people in debt feel they have nowhere else to turn.
"But help is often available - whether it’s through grants or through charities who provide money and energy advice.
"Advisors listen and support with household budgets and energy efficiency, they can help people access support such as unclaimed benefits as well as managing debt – this huge amount of new funding will help us to support tens of thousands more households at risk and in fuel poverty.”
The latest predictions from consultancy Auxilione are for yearly energy bills to rise to £3,576 from October 1, £5,066 in January 20233 and £6,552 from April.
The figures are the highest predictions yet for energy bills already causing pain for millions of homeowners.
Auxilione previously said Ofgem could set its price cap at £5,038 per year in October, £4,467 in January 2023 and £6,089 in April.
But the consultancy now says energy bills could spike further than expected due to rising natural gas prices.
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