Here’s where to get help if you can’t afford to pay your energy bills
Struggling to afford your energy bills? Here’s where to get help with the energy rebate, grants from your supplier and charities and what you need to know about your rights
Many households will struggle to pay their energy bills, which could be more than double what they were last year. Image: Pexels
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If you are worried about paying your energy bills in the cost of living crisis, you are far from alone. Millions of people are struggling to afford to heat their homes as bills soar, prompting calls for help for vulnerable people.
Jeremy Hunt confirmed in the Spring Budget that typical household energy bills will remain at £2,500 a year for the next three months, but that is still more than double what most people were paying at the beginning of last year.
The £400 energy rebate is also coming to an end for the majority of people at the end of March. National Energy Action says this means households will be £67 worse off when it comes to paying their energy bills. The discount was a lifeline for many over the cold winter months, but thousands have reportedly missed out because they couldn’t access the scheme or didn’t know about it.
It’s important to make sure that you are getting all the support you are eligible for in the cost of living crisis. Here is everything you need to know about how much bills are going up, the government support for energy bills, energy grants offered by suppliers and charities and what your rights are if you can’t afford to pay.
How much are energy bills going up?
Jeremy Hunt has confirmed the energy price guarantee will be frozen at £2,500 for the next three months. This means energy bills remain at their current levels, with a typical household spending around £2,500 a year on energy, but this is still double what people were paying at the beginning of last year.
The energy price cap doesn’t mean no family will pay more than £2,500 – this figure refers to the amount a household will pay based on average energy usage. If your household uses more energy than average, you may pay more.
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The energy regulator Ofgem has announced that its energy price cap is set to drop. It was £4,279 in January but will be £3,280 in April because of falling wholesale prices. But because the price cap is still higher than the government’s energy price guarantee, our energy bills will remain at around £2,500 a year.
But the good news is that energy bills are expected to fall later on this year. Analysts at consultancy Cornwall Insight forecast that Ofgem’s energy price cap will be set at £2,153.34 in July. The cap will finally be lower than the government’s energy price guarantee, and our bills should fall with it.
What government support is there for energy bills?
These are some government schemes which may help if you are struggling to pay your energy bills:
How to get the £400 energy bills support rebate
The government provided a £400 energy rebate to all households to help with the cost of living. People began receiving the first £66 instalment to help them with their gas and electricity bills on October 1 and the scheme ends in March for the majority of households. Most will have had the money hit their bank accounts automatically every month since October. If you haven’t had the discount yet and you pay your bill by direct debit, you should contact your supplier.
If you are on a prepayment meter or you don’t have a direct relationship with your energy supplier, read on to find out what actions you need to take to get the energy rebate.
How to get the £400 energy rebate if you’re on a prepayment meter
People with traditional prepayment meters have to cash in vouchers at top-up points.
For people on prepayment meters, redeemable vouchers will have been either be sent by text, email or post, or you will get an automatic credit when you top up at your usual top up point. The way it is paid varies by supplier and your usual payment method.
You need to make sure that your energy supplier has correct and updated contact details for you in order to get the payment. Many people on prepayment meters top up their card or key at a local convenience store, so if you haven’t had any word from your energy provider about the vouchers, contact them in the first instance.
Your supplier will then let you know how to get your discount and where to redeem your vouchers. This will be at a top-up point like your local post office or PayPoint shop. Payzone outlets are unable to accept the vouchers. For most suppliers, the voucher should arrive by 17th of each month and is only valid for 90 days.
It’s important to make sure that you are getting all the support you are eligible for in the cost of living crisis. Here is everything you need to know about how much bills are going up, the government support for energy bills, energy grants offered by suppliers and charities and what your rights are if you can’t afford to pay.
How much are energy bills going up?
Jeremy Hunt has confirmed the energy price guarantee will be frozen at £2,500 for the next three months. This means energy bills remain at their current levels, with a typical household spending around £2,500 a year on energy, but this is still double what people were paying at the beginning of last year.
The energy price cap doesn’t mean no family will pay more than £2,500 – this figure refers to the amount a household will pay based on average energy usage. If your household uses more energy than average, you may pay more.
The energy regulator Ofgem has announced that its energy price cap is set to drop. It was £4,279 in January but will be £3,280 in April because of falling wholesale prices. But because the price cap is still higher than the government’s energy price guarantee, our energy bills will remain at around £2,500 a year.
But the good news is that energy bills are expected to fall later on this year. Analysts at consultancy Cornwall Insight forecast that Ofgem’s energy price cap will be set at £2,153.34 in July. The cap will finally be lower than the government’s energy price guarantee, and our bills should fall with it.
What government support is there for energy bills?
These are some government schemes which may help if you are struggling to pay your energy bills:
How to get the £400 energy bills support rebate
The government provided a £400 energy rebate to all households to help with the cost of living. People began receiving the first £66 instalment to help them with their gas and electricity bills on October 1 and the scheme ends in March for the majority of households. Most will have had the money hit their bank accounts automatically every month since October. If you haven’t had the discount yet and you pay your bill by direct debit, you should contact your supplier.
If you are on a prepayment meter or you don’t have a direct relationship with your energy supplier, read on to find out what actions you need to take to get the energy rebate.
How to get the £400 energy rebate if you’re on a prepayment meter
People with traditional prepayment meters have to cash in vouchers at top-up points.
For people on prepayment meters, redeemable vouchers will have been either be sent by text, email or post, or you will get an automatic credit when you top up at your usual top up point. The way it is paid varies by supplier and your usual payment method.
You need to make sure that your energy supplier has correct and updated contact details for you in order to get the payment. Many people on prepayment meters top up their card or key at a local convenience store, so if you haven’t had any word from your energy provider about the vouchers, contact them in the first instance.
Your supplier will then let you know how to get your discount and where to redeem your vouchers. This will be at a top-up point like your local post office or PayPoint shop. Payzone outlets are unable to accept the vouchers. For most suppliers, the voucher should arrive by 17th of each month and is only valid for 90 days.
How to get the £400 energy bills support if you’re off the grid
Households without a direct relationship to an electricity supplier, such as those living in park homes, houseboats, mobile homes and care homes will now be able to get the £400 energy rebate.
This means an additional 900,000 people will benefit. You should apply for the energy bills support scheme if you don’t get it automatically through the government’s online portal.
After you apply, your local council will carry out checks and you’ll be told about the progress of your application by email or letter. You should get a response within six weeks. If you are eligible, your council will arrange a one-off payment of £400 which you do not have to pay back.
You can email the helpline team on alternativefunding@ebss.beis.gov.uk or call 0808 175 3287 if you need help with the application.
How to get the cold weather payment
You may get a cold weather payment if you’re getting certain benefits and the temperature drops to extremely cold levels. You’ll get a payment if the average temperature in your area is recorded as, or forecast to be, zero degrees celsius or below over seven consecutive days. You’ll get £25 for each seven-day period of very cold weather. How to get the Scottish welfare fund
The Scottish welfare fund offered in Scotland to provide a safety net for people on low incomes. These include crisis grants and community care grants. Find out how to apply here.
How to get the discretionary assistance fund
In Wales, there is the discretionary assistance fund. This includes an emergency assistance grant, which helps cover essential costs, such as food, gas, electricity, clothing or emergency travel if you are experiencing extreme financial hardship, have lost your job or are waiting for your first payment. You should apply through the Welsh government’s website.
How to get help from the finance support service in Northern Ireland
Low-income and vulnerable people will receive additional cost of living payments from the government. They will total £900 for people on means-tested benefits, £300 for pensioners, and £150 for people receiving disability benefits.
The £900 cost of living payment will be paid in three instalments. The first will be £301 and paid in spring 2023. The following one will be paid in autumn and the third will be paid in spring 2024.
People receiving certain benefits or tax credits are eligible for the cost of living payment. This includes: universal credit, income-based jobseeker’s allowance (JSA), income-related employment and support allowance (ESA), income support, pension credit, child tax credit and working tax credit.
How to get help from your energy supplier if you can’t pay your energy bills
A number of energy suppliers offer grants to their customers to help them pay off their energy bills. Contact your energy supplier if you are struggling to pay your bills and they may be able to help you in the cost of living crisis. We’ve listed a few grants available below:
British Gas Energy Support Fund
These grants are available to everyone who has a fuel debt of £250 to £1,500 and you don’t have to be a British Gas customer. You’ll need to seek help from your local money advice centre first (find yours here) and be able to show that you’ve thought about how you will manage your costs in the future. You can apply for a grant and get advice from the British Gas Energy Trust through their website.
Scottish Power Hardship Fund
Scottish Power has a fund to help low-income households get their energy payments under control. It can help by clearing or reducing arrears by crediting a customer’s ScottishPower energy account.
This fund could help you pay your current or final E.ON Next energy bills and potentially replace old appliances. Find out more on the E.ON website.
Octopus Octo Assist Fund
If you’re an Octopus customer, you can access their financial support form here. It asks you a series of questions about your financial situation. They offer a number of support options including access to existing schemes, monetary support from the Octo Assist Fund, or a loan of a thermal imagery camera to find heat leaks at home.
You can also earn rewards with Octopus for using less at peak times this winter. You need a connected smart electricity meter to be eligible.
Ovo Energy Fund
Ovo offers to help come up with a payment plan to make paying your energy bills more manageable. The company also runs a Let’s Talk Energy Fund and you can apply for the scheme here.
How to get charitable grants to pay your energy bills
People who are struggling financially may be eligible for charitable grants this winter. You can find out what grants might be available to you using Turn2Us’ grant search. There are a huge range of grants available for different people – including those who are bereaved, disabled, unemployed, redundant, ill, a carer, veteran, young person or old person.
Grants are also usually available to people who have no recourse to public funds and cannot claim welfare benefits. Turn2Us helps people to access grants and support services if they’re in financial difficulty. If you contact them, they’ll check what’s available to you.
Glasspool gives small grants for things like white goods, beds, bedding, children’s clothing and baby needs. For most charitable grants, you need to get a referral from a professional like a social worker, health professional, school or advice service.
Family Action provides practical, emotional and financial support to those who are experiencing poverty, disadvantage and social isolation across the country.
How to get help from your local council if you can’t pay your energy bills
If you are unable to pay your bills, your local council may have a scheme that can help you. Local councils may be able to give you debt advice, help you get hold of furniture, support you through food and fuel poverty.
Councils across the country are organising measures to help local residents this winter in the cost of living crisis. It is worth checking out their website or contacting them directly if you need any support this winter. Your council may have a local welfare assistance scheme, also known as crisis support. Find out what support your council offers through End Furniture Poverty’s local welfare assistance finder.
What are your rights if you can’t afford to pay your energy bills?
If your bills are too expensive and you can’t afford them, your energy supplier has an obligation to help, as regulated by Ofgem. They might be able to create a payment plan for you, and you can ask for emergency credit if you use a prepayment meter and can’t top up. You should complain to your supplier in the first instance if you don’t think you’re being treated fairly.
How to find a warm bank near you if you can’t afford to heat your home
If you are struggling to pay your heating bills, warm banks will be a lifeline. They are public spaces where people can warm up and socialise with others.
Warm Welcome has launched a virtual map of warm banks, making it much easier to find one near you. There were over 4,000 last time we checked, and that figure just keeps growing. All you need to do is type in your postcode and you’ll be able to find any warm banks registered with the campaign in your area.
Another way to find a warm bank near you is to look on your local council’s website or contact it directly. Even if it is not running a warm bank itself, it should be able to direct you to a charity or other community organisation which is offering support this winter.
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