Many households will have been plummeted into poverty as energy bills saw a whopping 54% increase on April 1.
The astronomical price increases mean some homes will be paying up to £700 more per year on gas and electric bills alone. Most people would normally attempt to look for a cheaper tariff, however, Martin Lewis from Money Saving Expert has advised people that the standard tariff is currently the cheapest available - despite the price cap seeing a rise in costs.
The only real way to bring bills down currently is to use less energy. But as the British weather is still quite cold, many people have be struggling to find ways to keep warm without it costing a fortune.
READ MORE: Martin Lewis' dire warning to those on fixed rate energy tariffs
Some households will be glad to know that they do not have to suffer in silence. Which have put together a guide for those who are in need of financial help during the energy crisis.
Contact your energy supplier
Talking to your energy supplier might feel like the last thing you want to do, but talking to them can help find out whether you can reduce your bill. They can offer various options such as paying by monthly direct debit or signing up for an online tariff.
Always contact them first before you stop any direct debits. If you miss a payment, your energy supplier won't disconnect your gas and electricity at the moment. But if you don't top-up your prepayment meter, your supply might still stop.
Providers can offer payment plans to help make bills more affordable. They must work with you to agree a payment plan that you can afford. Options vary between suppliers but you can ask for:
- a review of your payments and debt repayments
- a reduction in your payments or a payment break
- more time to pay access to hardship funds.
Try and agree a deal that works for both you and your supplier. You can also ask to be added to the Priority Services register - this offers free help and support if you are in a vulnerable situation.
If you have a prepayment meter and can't top it up, contact your supplier to work out how to keep your energy supply. Options can include:
- emergency credit
- nominating someone to top up for you
- adding a discretionary fund to your account
- sending you a pre-loaded top-up card.
Bear in mind that you'll eventually need to pay back any credit your supplier gives you.
Fuel direct scheme
You might be able to pay off what you owe through your benefits using the Fuel Direct scheme. This takes a fixed payment automatically from your benefits to pay off your debt gradually, while paying towards your current energy use.
The benefits you can use are:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment Support Allowance
- Income Support
- Pension Credit
Paying energy debt with a prepayment meter
Pay-as-you go energy is one option to stay on top of your energy spend. Some energy suppliers might also ask you to have a prepayment meter installed if you don't keep up with your payments. However, you can end up paying more for energy with a prepayment meter. So ask about other options first.
Energy company grants for fuel arrears
Many of the biggest energy companies also have independent charitable trusts to give grants to some customers to help them pay for fuel arrears.
- British Gas - British Gas energy trust
- Bulb - Bulb energy fund
- E.ON - E.ON energy fund
-
E.ON Next - E.ON Next energy fund
-
Octopus Energy - Octo assist fund
-
Ovo - Ovo energy fund
-
Scottish Power - Scottish Power hardship fund
If you can’t get a grant from your own supplier, check if you’re eligible for one from the British Gas Energy Trust. Its grants are available to anyone, even if you’re not a British Gas customer.
When you apply for any of the aforementioned grants, you will have to provide detailed information about your financial situation. It’s also worth checking whether there’s anything else you need to do before you apply on the supplier or Trust’s website.
Benefits and schemes to help pay energy bills
Government schemes and benefits can also help make your bills more affordable:
- The Winter Fuel Payment is an annual tax-free lump sum towards winter energy costs for those aged 66 or over.
- The Warm Home Discount is £140 off your bill if you get the guarantee element of Pension Credit. A broader group is also eligible, but the criteria vary between energy firms.
- The Cold Weather Payment gives extra help with energy bills when temperatures are below zero, if you get qualifying benefits.
- You might be eligible for a grant to make your home more energy efficient . Find out how the Energy Company Obligation can help you, and if your supplier offers free loft insulation.
- There are other benefits to help you keep up with bills and household expenses. Find out what help you might qualify for using the Gov.uk website.
Energy bill problems
Inaccurate and erratic billing can leave you in debt. If you get a large bill but it’s the first one you’ve had in a while, contact your supplier.
It should be able to arrange for you to repay the debt over the same time that it was built up (rather than demanding a big sum immediately). For example if you hadn't had a bill for 10 months, you could get 10 months to repay it.
Energy suppliers can’t back-bill you for energy you used more than 12 months ago, as long as they were at fault – for example, by not sending a bill when you asked, or billing you incorrectly.
The only exception is if you prevent your supplier from taking or receiving accurate meter readings – by tampering with your meter, for example. Don’t wait for your energy supplier to get in touch. Contact it when you know you’re struggling to pay your bills to stop a big debt building up.
Receive newsletters with the latest news, sport and what's on updates from the Liverpool ECHO by signing up here
