Extra Help When You Cannot Afford Your Energy Debt
If you are struggling with energy debt, your supplier may be able to offer more than a payment plan.
Some energy companies have their own support funds.
These may help with energy debt. Also, some can provide other forms of support.
However, each fund has its own rules.
So, it is important to check what your supplier offers.
Start With Your Energy Supplier
Contact your supplier if you are struggling to pay.
Explain what is happening.
Then, ask:
“Do you have a hardship fund or energy grant that could help me?”
This is worth asking even if you cannot find anything on the supplier’s website.
Citizens Advice currently lists several suppliers that offer funds or grants to customers who are struggling.
However, the help available can change.
Therefore, always check the latest information before applying.
Which Suppliers Offer Help?
There are several supplier support schemes.
At present, Citizens Advice lists:
- British Gas Energy Support Fund
- EDF Energy Customer Support Fund
- E.ON Next Energy Fund
- Octopus Octo Assist
- OVO Customer Support Package
- ScottishPower Hardship Fund
- Utilita Helping Hand
- Utility Warehouse Prepayment Relief Fund
These schemes do not all work in the same way.
Some focus on energy debt.
Others may offer wider support.
Therefore, check the rules for the fund that applies to you.
What Can an Energy Grant Do?
A grant may help reduce or clear energy debt.
For example, imagine you owe your supplier:
£800
You are paying for the energy you use now. However, you cannot afford to clear the old debt.
If you qualify for a grant, it may help with some or all of that debt.
That could make your account easier to manage.
However, a grant is not guaranteed.
You will normally need to apply.
You May Need to Show Your Finances
An energy grant is different from an automatic payment.
The organisation may need to understand your financial situation first.
Therefore, you could be asked about:
- Your income
- Your benefits
- Your household bills
- Your energy debt
- Other debts
- Your regular spending
You may also need to complete a budget.
This helps the fund understand what you can afford.
Citizens Advice says that some funds require applicants to complete a budget with an approved debt adviser before applying.
So, getting debt advice can sometimes be part of the process.
Do You Need to Be a Customer?
Usually, a supplier’s own fund is aimed at its customers.
However, there is an important exception.
The British Gas Energy Trust may offer grants to people who are not British Gas customers.
Therefore, if your own supplier cannot help, it may still be worth checking the British Gas Energy Trust.
You may need to get debt advice before applying.
Also, the fund has its own rules.
So, check that you meet them before starting an application.
What If Your Supplier Is Not Listed?
Do not assume that no help is available.
Contact your supplier.
Ask what support it currently offers.
For example, it may offer:
- A hardship fund
- A debt grant
- A new payment plan
- More time to pay
- Help with prepayment
- Emergency support
- A referral for debt advice
Ofgem says suppliers should support customers who are struggling with their bills.
Therefore, speaking to your supplier is still worthwhile.
A Grant Is Not the Same as a Loan
This is an important difference.
A loan normally needs to be repaid.
A grant normally does not.
However, that does not mean every application will be accepted.
Funds have limited money. Also, they may have rules about how often you can apply.
Therefore, read the conditions before applying.
Get the Account Right First
Before applying for help with energy debt, make sure the debt is correct.
For example, check:
- Meter readings
- Payments
- Estimated bills
- Your account balance
- Any back-billing
There is little point applying for help with £1,000 of debt if £400 of it should not have been charged in the first place.
So, start with:
Is the debt correct?
Then move to:
How can I deal with it?
We covered this earlier in Energy Bills, Charges and Back-Billing.
What If You Have a Prepayment Meter?
Supplier support is not only for people who pay by Direct Debit.
If you use prepayment and cannot afford to top up, contact your supplier.
Emergency credit or other support may be available.
Also, ask whether the amount being taken towards an old debt is affordable.
Ofgem says suppliers must help customers who say they cannot pay their bills. This can include a repayment plan or emergency credit.
However, if you need energy immediately, do not wait for a grant application.
Instead, ask about urgent support.
As we covered earlier, this may include:
Emergency credit
Fuel vouchers
Fuel Bank support
A grant can then form part of the longer-term solution.
What If You Have More Than Energy Debt?
Sometimes the energy bill is only one part of the problem.
You may also be behind with:
- Rent or mortgage payments
- Council Tax
- Credit cards
- Loans
- Water charges
- Other household bills
In that situation, paying one debt without looking at the others may not solve the problem.
Therefore, free debt advice can be useful.
An adviser can help you look at your finances as a whole.
They may also help you complete the budget needed for an energy grant.
Do Not Borrow Just to Clear the Energy Account
It can be tempting to use a credit card or loan to clear an energy bill.
However, this can simply move the debt somewhere else.
You may also start paying interest.
Instead, check whether your supplier can offer an affordable payment plan.
Then, check for grants and other support.
If several debts are involved, consider getting free debt advice before taking on more borrowing.
What About Fuel Bank?
Fuel Bank has a different role from most supplier grants.
It is mainly there to provide short-term emergency help for people who cannot afford to top up their prepayment energy.
Therefore:
Fuel Bank → Immediate energy crisis
while:
Energy grant → Longer-term debt support
Both can be useful.
However, they solve different problems.
You May Be Able to Get More Than One Type of Help
Receiving one form of support does not always stop you getting another.
For example, you may receive the:
Warm Home Discount
while also getting help through:
A supplier support fund
You might also receive a winter heating payment.
Therefore, do not think of financial help as one single scheme.
Instead, think of several layers of support.
Benefits
↓
Energy discounts
↓
Winter payments
↓
Supplier grants
↓
Emergency support
Different households will need different parts of that support.
Help Can Also Prevent Future Debt
Clearing an old debt is useful.
However, ask another question:
Why did the debt build up?
Perhaps your income fell.
Maybe your payments were set too low.
Or your home may simply use a large amount of energy.
If the problem is likely to happen again, look at the cause as well as the debt.
For example, you could:
- Review your payment amount
- Check your tariff
- Look at your energy use
- Check your benefits
- Improve insulation
- Look for heating grants
Otherwise, the old debt may disappear only for a new one to take its place.
Be Careful With Grant Scams
Genuine grants can attract fake offers.
Be careful if someone contacts you unexpectedly and says:
“You have been awarded an energy grant.”
Do not give bank details or passwords without checking who you are dealing with.
Also, be careful about paying someone to apply for a household energy grant on your behalf.
Instead, go directly to your supplier or the official fund.
If you need help completing an application, free advice may be available.
Before You Apply
A little preparation can make the process easier.
Gather:
- A recent energy bill
- Your account number
- Details of your energy debt
- Income information
- Benefit information
- Regular household spending
- Details of other debts
Then, check whether the fund asks you to get debt advice first.
Citizens Advice notes that grant applications can require detailed financial information.
Therefore, gathering the information first can save time.
A Simple Route to Energy Grant Help
If you are struggling with energy debt, follow this order.
1. Check the debt
Make sure the amount is correct.
2. Contact your supplier
Tell them you are struggling.
3. Ask about grants and hardship funds
Do not assume the supplier will mention them automatically.
4. Check the rules
Find out whether you qualify.
5. Get debt advice if needed
Some funds require this before you apply.
6. Complete the application
Provide the information requested.
7. Keep paying what you can afford
Do not ignore your current energy use while waiting for a decision.
8. Look at the cause of the debt
Try to reduce the chance of the problem happening again.
In Short
If you are struggling with energy debt, a payment plan is not always the only option.
Your supplier may have a fund that can help.
Several major suppliers currently offer grants or other support. Also, the British Gas Energy Trust may be able to help some people who are not British Gas customers.
However, each fund has its own rules.
So, check what is available.
You may also need to get debt advice before applying.
Most importantly:
Ask for help before taking on more debt to pay an energy bill.
A grant may help with money you already owe.
However, there is another way financial support can help.
It may also pay towards improvements that make your home warmer and cheaper to run.
That is where we go next.
Next: Help to Make Your Home Warmer →
Energility
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