Energy costs

If you're falling behind with your energy bills, and finding yourself struggling to pay, the best thing to do is contact your supplier as soon as possible. Under rules from regulator Ofgem, your supplier has to help you – usually by negotiating a payment plan that you can afford.

So don't panic – your supply won't be cut off. There are a range of options suppliers could offer if you're struggling, including:

• A full payment plan review
• Affordable debt repayment plans
• Payment breaks (though this won't be right for everyone)
• Payment reductions
• More time to pay
• Access to hardship funds

What help you can get is decided on a case-by-case basis, but importantly, repayment must be based on your ability to pay. So get in touch with your supplier as soon as possible.

If you are on a prepay meter, are struggling to top up and are facing self-disconnection, there's plenty of help available from your supplier – do contact them as soon as you start to get in trouble. Here's what they will do:

• All suppliers offer small amounts of emergency credit. You'll usually get £5 of emergency credit on your gas and electricity meter (£5 on each meter) that you can access through your meter. The option to use it usually becomes available when you've little money left on your meter (usually about less than 50p for electricity, or £2 for gas).
  
  How you access it depends on your meter, either by entering the card or clicking a button when the option pops up – your supplier will be able to tell you how it works for your meter. You will need to pay this back when next you top up.
   
• Friendly credit means you can't be cut off at certain times if your meter runs out. Friendly credit is there to protect you if you start running out of credit when the shops are closed. It means you won't be cut off and can keep using gas and electricity if you run out of credit during evenings, weekends and bank holidays.
  
  Times can vary slightly by supplier and season, but generally, you won't be cut off between about 6pm and 9am Monday to Saturday, all day Sunday, and on bank holidays. You'll need to pay back anything you've used during this time the next time you top up.
   
• Additional support credit is available to some if you can't afford to top up. If you can't afford to top up and you're facing self-disconnection through being unable to keep enough money on the meter, you may be able to get additional support credit (or extra support credit).
  What you can get, how this works, and if you're eligible will depend on your supplier, so speak to them as soon as possible.
  
  In general, additional support credit is usually for those in vulnerable situations (such as those of state pension age, or with a disability or long-term medical condition). It's also up to the supplier to assess how much additional credit you'll get and to work with you to come up with a repayment plan, based on your ability to pay.
  
  But even if you're not in a vulnerable situation, your supplier could still help if you're unable to top up. It may still be able to offer support credit or can review any debts you may be paying off through your meter, or give you access to hardship funds. It's all done on a case-by-case bases, so do get in touch with your supplier as soon as possible.

What's more, regulator Ofgem has strengthened protections for prepayment customers, requiring suppliers to proactively identify and contact customers that have self-disconnected due to being unable to afford to top up. This includes support for repaying any outstanding standing charges.

All the big energy firms have charitable trusts and funds that can help if you're in debt and struggling to repay (see which firms offer schemes). They offer schemes and grants to help with your energy costs, to replace faulty or old boilers, and to make your home more energy-efficient.

The British Gas Energy Trust Individual and Families Fund are available to anyone, offering grants of up to £1,500 to help with energy debt. 

Eligibility criteria is quite strict, but generally, to access the scheme you need to be spending more than 10% of your income on energy, have less than £1,000 in savings, have energy debts of at least £250 and have already sought advice on money issues from a charity or money advisor. You also can’t have received a grant from the British Gas Energy Trust within the last two years

The application process is fairly rigorous and you will need to have spoken to a debt adviser before applying. We would strongly suggest the best way to do this is via a charity, the main ones who will help with this are National Energy Action, Home Energy Scotland and Citizens Advice. You'll need to provide info on household income, expenditure and debts. It can take several weeks to process your claim.

British Gas also has a similar scheme that's only available for existing customers only, but it has just closed for new applications. 

Other big energy firms also have charitable trusts and funds that can help if you're in debt and struggling to repay. 

Similar help is available from the following firms:  EDF Energy Customer Support Fund / E.on Next Energy Fund / Ovo Energy Fund / Octo Assist Fund / Scottish Power Hardship Fund.

With these providers you'll need to be a customer of the firm to apply, and – similar to the British Gas scheme above – the application process for help with energy debt is fairly rigorous. Again, you usually need to have spoken to a debt adviser before applying, complete a full income and expenditure budget sheet, provide proof of your income, give details on how your arrears have built up, and say how the grant will help you. 

Exact eligibility requirements vary – some say you need to be in receipt of certain benefits for example – but those with the greatest need are prioritised on a case-by-case basis.

Over eight million households in the UK on means-tested benefits will get a payment of £650, as part of the wider package of support announced by the Government to help with the cost of living crisis. 

The Department for Work and Pensions (DWP) will make the payment in two lump sums – the first of £326 from Thursday 14 July, the second in the autumn, and this will go directly into the account you receive your benefits into. Those who receive tax credits only will receive their payments from HM Revenue & Customs (HMRC), not the DWP, and these will follow shortly after the other payments.

If you're on any of the following benefits, you need to have received a payment on any date between 26 April and 25 May 2022 to qualify:

• Child tax credit
• Income-based jobseeker's allowance
• Income-related employment and support allowance
• Income support
• Universal credit
• Working tax credit
• Pension credit

If you're on pension credit, to get the first payment you'll need to have been claiming it by 25 May 2022. However, if you were eligible for the benefit before this date and haven't made a claim, you can backdate it by three months, so you have until 24 August – but do it now, as we hear there's a backlog. 

The Government says this payment is tax-free, will not count towards the benefit cap, and will not have any impact on existing benefits. Eligibility info on the second payment will be set out "in due course".

What can I do if I don't get the payment? 

If you think you're eligible for the first cost of living payment, but you don't get it paid into your bank account over the coming weeks, the best thing to do is contact the office that pays your benefit or tax credits to find out why and whether you should have got it.

Every UK household with someone over state pension age (aged 66 or above) between 19 and 25 September 2022 is entitled to help towards their energy costs under the Government's Winter Fuel Payment scheme, which is usually between £100 and £300.

But this year, the cost of living support package includes a one-off £300 top-up to the winter fuel payment, so you could get up to £600. It'll be paid automatically in November or December. 

About six million people across the UK on certain disability benefits will receive a one-off payment of £150 in September. This will be paid straight into the account you currently receive your benefits into and is designed to help towards the cost of specialist equipment and food, and increased transport costs. 

To qualify, you must be receiving, or have begun an eventually successful claim as of 25 May 2022 for, one of the following benefits:

• Armed forces independence payment
• Attendance allowance
• Constant attendance allowance
• Disability living allowance
• Personal independence payment
• Scottish disability benefits
• War pensioners' mobility supplement

The Government says these payments will not count towards the benefit cap, and will not have any impact on existing benefits. You can also still qualify for the £150 payment if you've swapped disability benefits for mobility aids under the Motability Scheme – though details on how this will work in practice have yet to be confirmed.

The Warm Home Discount scheme is available to millions of households in the UK. It requires suppliers with more than 50,000 customers to help vulnerable people pay for their energy over winter. 

If you have a standard credit meter, the money isn't paid to you – it's a £150 rebate applied to your electricity or gas bill between October and March. If you're on a prepay meter, you'll usually be sent a top-up voucher.

Eligibility Criteria:

• If you get pension credit, you should get it automatically. If you or your partner receive the 'guarantee credit' element of pension credit, and your name (or your partner's) is on your energy bill, you should qualify for the discount as part of what's known as 'core group 1'. 
  
  Provided your energy supplier is part of the scheme (see the full list below), you should receive a letter (usually sent between October and December) confirming when the £150 will be deducted from your electricity bill. 

• On certain benefits? You should get the discount automatically – if you're deemed to have "high energy costs". If you don't qualify for the above, you may still get the discount automatically if you receive certain means-tested benefits, such as income support or universal credit, and you have "high energy costs". This is as part of what's known as 'core group 2'.

If you qualify, and providing your supplier is part of the scheme, you should receive a letter confirming when the £150 will be deducted from your bill. The Government has also said it is looking into providing an online tool to allow people to check their eligibility.

 

Full list of energy providers part of this scheme

Affect Energy (contact Octopus Energy)	M&S Energy (contact Octopus Energy)
Atlantic (contact SSE)	Octopus Energy
Boost	Ovo Energy
British Gas (including Scottish Gas)	Qwest Energy (contact Octopus Energy)
British Gas Evolve	Roar Power (contact Octopus Energy)
Bulb	Sainsbury's Energy
Co-op Energy (contact Octopus Energy)	Scottish Power
E (gas and electricity)	Shell Energy
E.on	So Energy
E.on Next	SSE
Ecotricity (1)	SSE Southern Electric
EDF Energy	SSE Scottish Hydro
Green Energy UK (1)	SSE Swalec
London Power (contact Octopus Energy)	Utilita
Lumo (contact Ovo Energy)	Utility Warehouse

1) Only provides the discount to the 'core group'. 

To qualify under the 'core group 2' criteria, you'll need to get one of the following benefits:

• Child tax credits – provided your household income is below a certain level (the exact amount has not been announced yet)
• Housing benefit 
• Income-based jobseeker's allowance
• Income-related employment and support allowance
• Income support 
• Pension credit ('savings credit' element)
• Universal credit
• Working tax credits – provided your household income is below a certain level (the exact amount has not been announced yet)

You'll also need to have "high energy costs". The Department for Business, Energy and Industrial Strategy (BEIS) will set out the threshold of what "high energy costs" are each year.

It will determine if your household hits these thresholds using data from the Valuation Office Agency on the type of property (for example, semi-detached or detached), property age and floor area.

Currently, it's difficult to check whether your home qualifies under the 'high energy costs' criteria. However, according to energy regulator Ofgem, BEIS is looking at developing a tool to check your eligibility.

Under the Cold Weather Payment scheme, older people and those on certain benefits in England and Wales can get a grant to help cover costs when temperatures hit zero degrees or below in their area.

It applies if the average temperature is – or is forecast to be – 0°C or below for seven days in a row between 1 November and 31 March. You get £25 for each seven-day period. It's usually automatic if you get pension credit, or get other benefits including some universal credit recipients and some who get support for mortgage interest. 

Eligibility for the schemes: 

• Pension credit. You'll usually get the payments if you do not live in a care home. 

• Income support and income-based jobseeker's allowance. You'll be eligible if you have a disability or pensioner premium, a child who is disabled, get child tax credits that includes a disability or severe disability element, or you have a child under five living with you.
   
• Income-related employment and support allowance. You'll be eligible if you have a severe or enhanced disability premium, a pensioner premium, a child who is disabled, get child tax credits that includes a disability or severe disability element, or you have a child under five living with you.
   
• Universal credit. You'll be eligible if you have a health condition or disability and have a limited capability for work, or you have a child under five living with you.
   
• Support for mortgage interest. You may be eligible if you have a disability or pensioner premium, a child who is disabled, get child tax credits that includes a disability or severe disability element, or you have a child under five living with you.

Under the Household Support Fund, councils in England have access to a pool of £1 billion in funding to help those most in need. The cash is available to local authorities to spend between April and September 2022, and is aimed at supporting the most vulnerable with essentials during the UK's ongoing recovery from the pandemic.

The Government has announced that it's going to extend this scheme, with another £500 million in funding to be made available between October 2022 and March 2023. 

The fund is aimed at providing small grants to meet daily needs, such as energy bills, as well as other utilities, housing costs, food and other essentials.

Eligibility varies, as it's up to councils to decide, but generally, the grant is for vulnerable households and those in most need of support. To find out what your council offers and whether you might qualify for support, and to apply, contact your council as soon as you can, as funding could run out at any time.

If you're struggling to pay for your energy and you're on certain benefits, you may be able pay directly from your benefit payments instead under a Government scheme known as Fuel Direct (also known as 'third party deductions'). The scheme lets you arrange to have a small, fixed amount deducted directly from your benefit payments each week to go towards paying off energy debt.

To use the scheme, you need to contact your Jobcentre (or Pension Centre if you are claiming pension credit) and give them details of your supplier and what you owe. Your Jobcentre or Pension Centre will then get in contact with your provider.

How much will be dedicated depends on which benefit scheme the payment is deducted from:

• If you claim universal credit. A fixed rate of 5% of your entitlement can be deducted and paid directly to your supplier for gas and electricity (and water).
   
• For other benefits. A set amount of £3.70 will be directly deducted each week to pay off the debt you owe, plus an additional amount to cover your ongoing usage. For example, if you use £5 of energy a week, a total of £8.70 will be deducted directly from your benefits.
  
  Be aware though, if the set amount to cover your debt and the additional sum for your ongoing usage comes to less than 25% of your total benefits, the payment to your supplier can be set up without your permission. So be sure before you apply. You can use the Fuel Direct scheme with income-based jobseeker's allowance, employment and support allowance, income support and pension credit.

The breathing space scheme, officially known as the Debt Respite Scheme, is a Government scheme that can relieve some of the pressures and stress of being in debt.

If you pass eligibility, your creditors are informed and must stop collection or enforcement activity, and won't be able to add interest or fees to your debt for up to 60 days.

Debt charity StepChange has full info on eligibility and can take you through the application process.

The Priority Services Register is a free support service operated by energy suppliers and network operators (the firms that own the pipes and wires). It offers a range of service to help people in vulnerable situations (see full eligibility below).

The help you can get includes:

• Advance notice of planned power cuts. If you rely on energy supply for medical reasons, your network operator will inform you of planned power cuts.
   
• Priority support in an emergency. Network operators can provide you with heating and cooking facilities during unexpected power cuts.
   
• Identification and password scheme. To reassure you that energy and network employees are genuine, they can arrange things like a particular password or picture card if they need to visit you.
   
• Nominee schemes. You can nominate someone to receive communications and bills from your supplier.
   
• Help with prepayment meter access. For example, suppliers could move your meter if you can access it easily to top up.
   
• Regular meter reading services. If you can't easily read the meter yourself, or nobody else can.
   
• Accessible information. For example, account info and bills in large print or Braille.

To get on the register, you'll need to contact your supplier and ask to be placed on it. You only need to contact your supplier, as you can ask them to pass on your details to the network operator to be added to their register as well.

If you have different suppliers for gas and electricity, contact both providers and ask to be registered, and if you switch, don't forget to ask your new supplier about it.

You are eligible for the Priority Services Register if one of the following applies to you:

• You've reached your state pension age
• You are disabled or have a long-term medical condition
• You are recovering from an injury
• You have a hearing or sight condition
• You have a mental health condition
• You are pregnant or have children under five
• You have extra communication needs (such as if you don't speak or read English well)

You might still be able to register for other reasons if your situation isn't listed. For example, if you need short-term support after a stay in hospital.

The government has advised new financial support for 2023 - 2024

Find out more here.