The cost of living crisis is set to escalate in October with the impending price cap rise on the horizon. But consumers have been told it will prove more harm than good if they decide to protest and not pay their energy bills.
Don’t Pay UK is a campaign encouraging UK residents to basically ‘go on strike’ and pledge to withhold payment from their energy supplier throughout the month of October. But experts have warned that drastic action like this could have lasting repercussions.
Specialists at Debt Support Centre insist failure to meet payments is likely to result in serious consequences, such as bad credit ratings, the arrival of bailiffs to your home or even court action. They say it is important to consider all of the risks that could arise as a consequence of missed payments.
Late Payment Fee: You could be charged a late payment fee for missing a payment, which will be recorded on your credit report. There will be more information on your energy supplier’s website in regards to how much late payment fees may be.
A Default: This may be recorded on your credit report if you miss payments for three to six months, which can have a serious impact on your credit score. Following a payment default, your energy provider could switch your energy supply to a prepayment meter, which is often more expensive.
Energy Providers: They could also pass on your debt to a debt collection agency, apply to the court to deduct the necessary funds from your wages or benefits, or in some circumstances, send bailiffs to your home. As a last resort, energy providers could stop providing energy to you – this is a very rare occurrence but still one to keep in mind.
James Gibson, financial expert at Debt Support Centre said: “We understand that life is financially challenging for many, and with the October price cap rise, joining the Don’t Pay UK campaign feels like a way to send a strong message to the government about our struggles. However, there might be better ways to deal with our energy-related debts that wouldn’t damage our credit files.
“There are schemes, grants, and benefits available from energy suppliers and the government to help people through these challenging times. We suggest seeing if you qualify for these solutions before considering not paying your bills.
"Failing that, many charities and debt help companies can help you find a less drastic solution to your financial problems.”
Energy suppliers could also set up a payment plan to cover what you owe as well as the amount of your current energy use. So as to be able to afford them, these will be in smaller instalments.
Those on Jobseeker’s Allowance, Income Support, Support Allowance, Pension Credit, or Universal Credit may be able to repay debts directly through those benefits. A fixed amount will be taken each month to cover what is owed and what the usage is.
James added: If you feel that you still want to be heard by the government, continue to support the Don’t Pay campaign in spirit and sign as many petitions as you can put your hands on. We would recommend that protecting your financial future should remain a top priority.
“The energy and cost of living crisis should pass, but damaged credit could harm people long after things have improved.”
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