Charities warned people could lose their energy supply if they stop paying bills, as thousands reportedly sign up to a campaign calling for a boycott of bills.
Don't Pay UK's website claims more than 100,000 people have pledged to cancel their direct debits from October 1 if their demand for energy bills to be reduced to "an affordable level" isn't met. The campaign, which said it'll act if it gets a million pledges, said: "Mass non-payment is not a new idea, it happened in the UK in the late 80s and 90s, when more than 17 million people refused to pay the Poll Tax – helping bring down the government and reversing its harshest measures.
"Even if a fraction of those of us who are paying by direct debit stop our payments, it will be enough to put energy companies in serious trouble, and they know this. We want to bring them to the table and force them to end this crisis."
READ MORE: Bill payers warned to prepare for October's energy price rises now by buying this essential item
Soaring energy bills, predicted to hit an average of £4,266 a year by January 2023, have forced families across the country to choose between heating and eating. With prices for essentials rising across the board, and inflation expected to reach 11% by October, charities are warning people won't have enough money to even make that choice.
Citizens Advice said it's seen more people seeking "help with crisis support, energy problems and not having enough money to make ends meet than ever before" as the country faces "its biggest cost of living crisis in decades". Conservative leadership contender Liz Truss is promising tax cuts, while her rival Rishi Sunak pledged £10bn to support people with energy bills, and public figures from Martin Lewis to Gordon Brown urged them to do more.
While the public waits for whatever help may come, some are growing weary and looking to take action of their own. But not paying your bills can come with serious consequences. This can come as soon as 28 days after missing a bill, when your gas or electricity supplier may contact you to discuss the possibility of disconnecting your supply, according to Citizens Advice.
Gas and electricity bills are classed as "priority bills", which also includes rent, phone or internet bills, and council tax arrears. These debts can cause "particularly serious problems" if not resolved, and you need to pay them off before other debts like unpaid parking fines or credit card debt. Water bills are not a "priority bill" because the supply can't be turned off.
Richard Lane, director of external affairs at StepChange debt advice service, said: "Any arrears will be added to the meter and a set amount will be deducted each week. This means you must pay the arrears at a set weekly amount or lose the supply. Your supplier can also remove the meter and cut off your supply, but fortunately this is incredibly rare."
He urged people not to put off getting help if they've fallen behind on bills, saying: "Contact your supplier to let them know you're struggling, they may be able to offer support and inform you about any available grants to pay off a utility bill, or negotiate an affordable payment plan."
British Gas, the country's largest supplier of gas for home use, had a market share of roughly 28% in domestic gas and 20% in domestic electricity in the first three months of this year, according to government regulator Ofgem. The company's website says it always considers individual circumstances, and wants "to do everything we can to help you pay", but they have several options to pursue if you haven't paid and they can't contact you.
These include giving your details to a debt collection agency, applying to court for a warrant to install a Pay As You Go meter, and remotely switching your smart meter to a smart Pay As You Go meter. Such prepayment meters, used by many of the poorest people in the country, lets users pay smaller amounts, but overall they're more expensive, and you could be left without energy if you can't afford to top it up.
You may also be left footing the bill of these measures. British Gas charges £28 in admin fees and for passing your account to a debt collector, £39 for a home visit, £56 for applying for a warrant to enter your home, and £94 to carry out this warrant and fit the prepayment meter.
Suppliers must give seven days notice for gas, and seven working days for electricity, before making the move to a prepayment meter, and there are some circumstances in which you can refuse it, according to Citizens Advice. This includes when illness or disability prevents you from getting to the meter or means you'd be harmed by having supply cut off.
You can also refuse if "you don't agree that you owe them money, and you've told them this - for example if the debt came from a previous tenant". If none of this applies and you refuse anyway, the supplier could charge you extra for the cost of a court warrant and installation when they go ahead with it
British Gas said: "If you don't pay, you could damage your credit rating. And that can make it harder to borrow money in future - including higher interest rates and stricter rules. You can avoid this by paying your bill on time or by letting us know as soon as possible if you can’t pay your next bill in full. We'll then arrange an alternative way to pay that works for you."
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