STRUGGLING British Gas customers urged to check for letters offering to wipe debts as 600,000 landing on doormats.
The UK’s biggest energy supplier has announced an extension to its “You Pay We Pay” support scheme.
British Gas has announced it will extend its support scheme[/caption]
The initiative, which first launched in June 2024, matches customers’ energy debt repayments to help customers pay off their bills.
For instance, if a customer pays £100, British Gas will pay off £100, too, effectively wiping half the amount owed and getting them back on track sooner.
British Gas will also introduce a new feature so that customers can take payment breaks.
That means if you can’t afford to make regular payments you can still benefit from this help.
The firm said it is now writing to 600,000 customers this month whom they think might be eligible for support.
It has also written an open letter encouraging those who are struggling to see what help is available.
It has a total of £10million to help households in need and the scheme is expected to end this summer.
You must be a British Gas customer for at least six months to be considered.
The help will be available to anyone considered to be in fuel poverty or who has sought debt advice, and the scheme is for those on prepayment meters as well as those who are billed.
Customers can also still access other hardship grants at the same time as this support.
Chris O’Shea, group chief executive of Centrica, parent company of British Gas said: “We know this winter has been particularly tough for many households, and it’s not always easy to keep on top of growing bills.
“We want to make sure as many customers as possible get the support they need and that’s why we’re extending our ‘You Pay We Pay’ scheme.”
It comes as many households are struggling with rising energy costs.
Ofgem’s latest price cap means the average bill for those not on a fixed deal has risen by £1,717 a year to £1,738.
This cap will be in place until April and then experts predict the figure will increase again to £1,785.
Who’s eligible for the help?
British Gas said that tens of thousands of customers are eligible for the help.
These customers will be identified “proactively” and receive the support after an assessment by one of its specifically trained advisors.
This means customers do not need to contact British Gas to apply.
A detailed assessment would be made to determine if customers qualify for the scheme but broadly, they must:
- Be in or facing fuel poverty
- Must have obtained or will obtain debt advice.
- Have been a British Gas customer for at least six months
- Pre-agree a payment amount following the assessment
Applications are open now and you can apply for the help on the British Gas website by searching www.britishgas.co.uk/energy/help-with-bills/.
How does it work in practice?
If British Gas contacts you and tells you you’re eligible to receive support under its “You Pay: We Pay” scheme, you’ll need to agree to repay your debt.
For example, if you have a £1,000 debt on your British Gas account, you may be able to agree to pay it off over six months from June.
In this scenario, you could agree to repay £83 a month for the period.
British Gas would then top up these payments by another £83.
This means, in total, you’d be paying off £166 of your debt each month.
Multiply this by six monthly payments, and you’ll have paid off the £1,000 of arrears by December.
What should I do if I fall into debt?
You should contact your supplier as early as possible to let them know if you’re struggling.
Energy debts are priority debts, which means there can be more severe consequences to not paying than with other types of debt.
Failing to engage with your supplier about your debt could also see them apply for a court warrant to forcibly install a prepayment meter in your home.
Once you’ve contacted your supplier about your debt problems, ask for an affordable repayment plan.
Your supplier should work with you to figure out a sensible amount you can pay towards your debts each month.
Your supplier may also allow you to apply for an energy grant.
These could be delivered as energy credits to help cover your debt, or your supplier might agree to wipe your outstanding balance.
Ask your supplier what’s on offer and how to apply.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.
