A new poll suggests six-in-10 Scots are worried about affording their bills this year including mortgage repayments, monthly rent, and energy costs. The Survation poll for Scotland’s national advice charity, Advice Direct Scotland, also indicated 17 per cent of those with debt have fallen behind in their repayments.
Energy bills, credit cards, and Council Tax arrears were selected as the most common forms of debt for those in this situation. The poll also found concerns among Scots about housing costs, with 47 per cent of those with a mortgage worried about being able to afford monthly payments, and 55 per cent of those who rent their home expressing the same concern.
Around a fifth (21%) of those with a mortgage said they are on a fixed-rate deal which ends in the next 12 months, in a sign of the challenges ahead amid rising interest rates. However, the poll shows that 63 per cent of those who have fallen behind on repayments have not sought independent expert advice about their debt.
Commenting on the findings, John Baird, head of debt services with Advice Direct Scotland, said: “This poll demonstrates the alarming scale of Scotland’s debt crisis. A majority of people in the country are worried about being able to afford their financial commitments over the coming year, and debt levels have increased for many.
“We urge people in Scotland not to struggle alone with their debt – our specialist expert advisers are ready to help those with personal finance worries who need a way of getting back on track.”
Specialist debt and money advisers at Advice Direct Scotland can work with people to assess their current situation, look at their income and outgoings, and consider what to do next. This includes checking to make sure that people are receiving all the benefits they are entitled to. The free service can be contacted via the website www.moneyadvice.scot or on 0808 196 2316.
Help with energy bills
People not sure of the support available from their energy provider might find this guide from Les Roberts, content manager at Bionic, handy - especially if the UK Government's £2,500 Energy Price Guarantee goes up to £3,000 on April 1 as planned.
Les explained: “The most important step to take if you feel you cannot afford your energy bill is to contact your supplier as they are obliged to outline your options, such as organising a payment plan.”
Under official Ofgem rules, your provider must organise an affordable payment plan and as part of this, consumers have the right to ask for a bills review to see if the amount is correct, a break from payments until you can afford to pay, a reduction to an affordable rate, access to advice on how to reduce energy usage or more time between payments.
Your provider must also give you access to any available hardship funds, charitable grants or help you apply for any available government grants if they have not been automatically applied.
What can my supplier do if I cannot pay my bill?
Les explained: “Your supplier is obliged to give you at least 28 days to repay any debt you fall into before they take action. After this point, your supplier can take steps to install a prepayment meter in your home but they have to give at least seven days notice.”
Les added that the prepayment meter should be a last resort as your provider should first offer a repayment plan or help setting up a repayment plan through your state-funded benefits.
However, he also warned: “If all the above conditions are met and your supplier does supply you with all the above assistance and you still refuse to pay, they do have the right to gain a warrant to enter your home and install a prepayment meter or they could change your smart meter setting to a pay as you go set up.”
Your provider is also obliged to move your prepayment meter to a more accessible location if you are struggling to access it. For example, if you are disabled or have limited mobility and the prepayment meter has been installed out of your reach.
Extra support for vulnerable energy customers (Priority Services)
If you are classed as a ‘vulnerable’ individual, for example if you are disabled, chronically ill, have reached State Pension age, are pregnant or have a mental health condition, you should be able to access priority services from your energy network.
Your energy network is different to your energy provider.
Les explained: “While your provider sends you a bill, your network supplies the energy in your area. Find out who the network is in your area and apply for priority services using a form on their website.”
Priority services your network may be able to provide include:
- Sending someone to check your meter regularly if you are unable to do so
- Providing you with hot meals if you have regular power cuts.
What to do if your supplier is not giving you support
Les explained: “Find your energy provider’s contact details either online or on your latest energy bill and file a complaint with them, either online, by phone or letter. Make sure to keep a record of any past correspondence, such as emails asking for support which went unanswered. Keep a record of correspondence dates so you can prove you have been left without an answer.”
You can also contact Citizens Advice who may be able to help with your complaint and provide a template complaint letter.
You can also go to the Energy Ombudsman, a service which handles disputes between providers and consumers, if your complaint has been unanswered, or you are not satisfied with the reply after eight weeks.
Les explains: “If you cannot come to an agreement with your provider they are obliged to help you contact the Energy Ombudsman. This service is approved by Ofgem.”
Bionic has a range of energy guides to help businesses across the UK, you can find them online here.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook page here, follow us on Twitter @Record_Money, or subscribe to our newsletter which goes out Monday to Friday - sign up here.
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