Millions of people across the country are looking for help to pay their bills as they face a steep rise in energy costs.
From October, the energy price cap could lead to annual bills hitting £3,549 typically and £3,608 for the 4.5 million people on pre-payment meters. Consumer rights campaigner Martyn James says that while there are no easy answers, there is help available for those who are struggling.
Regulator Ofgem has a page on their website that lists your options, grants and other schemes here. And below is Martyn's advice if you can’t pay your energy bills. His full guide can be seen in The Mirror.
Read More: Martin Lewis warns Brits not to cancel direct debits as Ofgem's energy price cap soars
What help can I expect if I’m in financial difficulties?
Before you contact the energy firm, you’ll need to put together a brief overview of your finances. This doesn’t need to be exhaustive so around fifteen minutes should cover it.
Write down the money you have coming in and what you pay out – and the amount of cash you are left over with. The energy firm is allowed to ask you for this so they can figure out the best solution to your situation.
Make sure you note down if you are worried about losing your job, or a source of money. Have a think about your home situation too. It can help to explain about the needs of your family, who the wage earners are and if anyone has specific needs or could be considered vulnerable or older. According to Ofgem’s regulations, the energy firm should come up with a tailored plan to meet your needs.
You can read what businesses are supposed to do on regulator Ofgem’s website here. Ofgem says that you can ask for the following:
- A review of your payments and debt repayments
- Payment breaks or reductions
- More time to pay
- Access to hardship funds
- Advice on how to use less energy
- The option to go on the Priority Services Register – a free support service for a wide range of people struggling or who need support
If you feel that the business is not listening or helping – or they are making things worse - then you can take your complaint to the Energy Ombudsman for free. Make it clear to the business that you expect them to take no action against you while the matter is looked into by the ombudsman.
Grants and energy schemes
Most of the energy businesses offer energy or heating grants for their customers. While most of these offers are for their own customers who meet certain criteria, others, like the scheme run by British Gas, are open to everyone. Citizens Advice has a really useful list of all of the main schemes here.
As with help for people in financial difficulties, you’ll need to have the details of your budget and financial situation to apply. If you don’t have access to the internet, you can talk to Citizens Advice to get some help and advice.
Government schemes
There are a range of payments that you might qualify for as part of the Government’s grants for older or more vulnerable people, including the following:
Winter Fuel Payment
This is a payment of between £250 to £600 for people born on or before 25 September 1956. The payment includes the ‘Pensioner Cost of Living Payment of between £150 to £300 – which is only available in Winter 2022. The way the payments are calculated is a little complicated to explain. However, there’s a handy table you can check here.
Cold Weather Payment
If you receive any of these benefits then you should qualify for the Cold Weather Payment. This is a £25 payment for every seven days of very cold weather (below freezing) between November and March.
Warm Home Discount Scheme
This is a discount scheme due to be confirmed in November 2022. Last year, people who qualified got £140 off their energy bill as a discount on the bill itself.
I believe the payment will be £150 this year. Your energy provider decides if you qualify. You should get the payment if you are on a low income or you receive the Guarantee Credit element of Pension Credit.
Other schemes
The Cost-of-Living payment is a rather complicated series of payments that you should automatically get if you qualify for certain benefits. The payments are under way with more to follow.
The Household Support Fund was created last year to provide help for people struggling with their bills or who might fall in a ‘vulnerable’ category. You apply for a grant from the fund from your local council. The money is provided on a discretionary basis, meaning the councils decide who gets what (and how). That means quite a bit of variance around the UK over who gets what.
You might find that you are offered vouchers instead of cash – presumably because councils can get a better deal block buying these from participating retailers.
Finally, from October we will all start to receive the £400 Energy Bills Support Scheme, which will be paid out in six monthly payments from October. You can find out more about the scheme and how you will get the money here.
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