Dealing with rising energy bills or falling behind on payments can be overwhelming. If you’re struggling with overdue gas or electricity costs, an energy bill payment plan might be the solution. This guide will help you explore your options, create a manageable plan, and even check your eligibility for energy grants, ensuring you can regain control of your finances and reduce stress.
Who should you talk to about energy bill hardship?
No one wants to struggle with their bills or be chased for payments they can’t currently make, we completely understand this. The best approach — although it may feel daunting — is to reach out to your energy provider at the earliest possible opportunity. They will want to work with you to put a plan in place that allows them to get paid while also increasing your ability to pay long into the future. Try to think of them as on your side and begin the process of asking about an energy bill payment plan.
What Is an Energy Bill Payment Plan?
This is a payment method which will allow you to pay a smaller monthly amount over an extended period of time to help you catch up and get back on your feet. For example, if you owe £300 to your energy supplier and typically pay £100 a month, but can only currently afford £50 per month, a payment plan could be discussed.
How To Get an Energy Bill Payment Plan?
To apply for an energy bill payment plan you should:
- Contact your energy supplier and have your account number to hand
- Ask to clarify your historical monthly payments and the current amount you owe
- Be prepared to provide your current monthly income and outgoings
- Come to an agreement about how much you can realistically pay each month
This is a proactive step that will help you turn things around, not something that you should feel ashamed for considering. Even if you later fall behind on the payment plan, there are still options open that make it well worth keeping a regular dialogue open.
What Happens If you fall Behind on Your Energy Bill Payment Plan?
You could potentially be fined or charged interest if you fail to tell your energy provider that you are on course to default on the payment plan. Taking a proactive approach is always the least stressful route.
The DWP can use third party deductions to take money owed to energy companies directly from your benefits. You can take back control of this often stressful, uncertain arrangement by using the Fuel Direct Scheme. This is where a fixed payment is automatically deducted from your benefits and a running balance is kept accessible to both sides.
Contact the Jobcentre and they will guide you through the application process. It will involve confirming your identity and then using Jobcentre staff to liaise with your energy provider, who must agree to the repayment plan.
👉 Agreeing a payment break over the phone with your provider by updating them on your latest monthly household income and overheads is another option. They will also point you towards advice regarding energy grants.
Are There Any Energy Grants in the UK This Winter?
There is a lot of help you can get from the government, provided you know where to look. Making use of the following schemes and grants, while also discussing a payment plan with your supplier, is the best way to turn things around:
- Check if you can get the £150 Warm Home Credit here and then use the money to automatically subsidise your energy bills during the winter months
- Call the Winter Fuel Payment line (0800 731 0160) if you were born on or before September 23, 1958 to discuss your eligibility — this is particularly important this winter as the new government considers changes to the system
- If winter weather typically goes below zero for 7 consecutive days, check the Cold Weather Payments eligibility tool for additional payments you may be entitled to
💡 Good to know: The National Grid Scheme is a government-backed discount scheme that could give you an energy rebate if you use only minimal power at peak times. To qualify for this scheme you will need to have a smart meter installed in your property.
Getting Help With Your Energy Bills
The best way to change your situation if you are struggling with your energy bills is to reach out to your supplier. Talk them through your monthly budget so they can gauge what you can afford to pay with a view to setting up a payment plan. At the same time, look into the government grants listed above to see what other assistance you may be entitled to. Think of each call you make as you taking back control and things will be better before you know it.
FAQ’s
1. Do British Gas help with energy bills?
The British Gas Hardship Fund offers an online application that could see you get up to £600 of assistance via credit over the course of 6 months. You will be asked to provide details on your household income and overheads.
2. Are there alternative sources of advice to energy companies?
Yes, both Citizens Advice and Shelter will offer free impartial advice to anyone experiencing energy hardship or fuel poverty at any time of the year.
3. Should I ignore energy bill payment reminders?
No, this could see you charged interest, facing a fine, and even having money taken directly from your benefits. While it may be stressful, reaching out for help is always the best approach.
