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Energy bills: What can I do if I can't afford to pay? | Energy bills: What can I do if I can't afford to pay? |
(about 1 month later) | |
Energy prices have fallen from 1 April, but many households will still struggle to pay their bills. | Energy prices have fallen from 1 April, but many households will still struggle to pay their bills. |
Some will need to repay debt to suppliers and many will worry about future levels of financial support. | Some will need to repay debt to suppliers and many will worry about future levels of financial support. |
What is happening to energy bills? | What is happening to energy bills? |
From April, energy bills fell by more than 12% for most people in England, Scotland and Wales. | From April, energy bills fell by more than 12% for most people in England, Scotland and Wales. |
Energy regulator Ofgem announced the average household paying for dual fuel by direct debit would now pay £1,690 a year. | |
That's a drop of £238 (or about £20 a month) from the previous energy price cap, external - the maximum amount suppliers can charge for each unit of gas and electricity used. | |
It's the lowest level in more than two years, a period when energy prices soared due to Russia's invasion of Ukraine. | It's the lowest level in more than two years, a period when energy prices soared due to Russia's invasion of Ukraine. |
What is the Ofgem energy price cap and how much are bills going down? | What is the Ofgem energy price cap and how much are bills going down? |
What is the Ofgem energy price cap and how much are bills going down? | |
How many people can't pay their energy bills? | How many people can't pay their energy bills? |
About 5.3m people in Great Britain are in debt to their energy supplier, external, research by Citizens Advice suggests. | |
The charity says 1.7m people lost connection at least once a month in 2023 because they couldn't afford to top up their prepayment meter. | The charity says 1.7m people lost connection at least once a month in 2023 because they couldn't afford to top up their prepayment meter. |
Its survey found that 800,000 people went more than 24 hours without gas and electricity because they couldn't afford to top up. | Its survey found that 800,000 people went more than 24 hours without gas and electricity because they couldn't afford to top up. |
It estimated that 2m people would lose their power supply for the same reason between January and March 2024. | It estimated that 2m people would lose their power supply for the same reason between January and March 2024. |
What happens if you don't pay your bill? | What happens if you don't pay your bill? |
Under Ofgem rules, your supplier must work with you to agree a payment plan. | Under Ofgem rules, your supplier must work with you to agree a payment plan. |
If you don't agree one, they might try to force you to have prepayment meter installed or switch an existing smart meter to prepayment mode. | If you don't agree one, they might try to force you to have prepayment meter installed or switch an existing smart meter to prepayment mode. |
In very rare cases, if you haven't paid a bill after 28 days, you might be threatened with disconnection. | In very rare cases, if you haven't paid a bill after 28 days, you might be threatened with disconnection. |
If you've reached state pension age, your supplier can't disconnect you between 1 October and 31 March if you either: | If you've reached state pension age, your supplier can't disconnect you between 1 October and 31 March if you either: |
live alone | live alone |
live alone | |
live only with pensioners, or under-18s | live only with pensioners, or under-18s |
live only with pensioners, or under-18s | |
Suppliers can pass your details to a debt collection agency - and you might be charged more to cover the cost of this. | Suppliers can pass your details to a debt collection agency - and you might be charged more to cover the cost of this. |
Many suppliers also charge extra fees for late payments. | Many suppliers also charge extra fees for late payments. |
Non-payment could also damage your credit rating and make it harder to borrow money in the future. | Non-payment could also damage your credit rating and make it harder to borrow money in the future. |
Can I be forced to have a prepayment meter? | Can I be forced to have a prepayment meter? |
Suppliers can install a prepayment meter without a household's permission - but only if they meet certain requirements. | Suppliers can install a prepayment meter without a household's permission - but only if they meet certain requirements. |
These were brought in after an investigation by The Times, external found debt agents acting for British Gas wrongly broke into vulnerable people's homes to fit meters. | |
The rules, external mean suppliers must give customers more opportunity to clear their debts, contacting them at least 10 times before installing a meter. They also have to conduct a "site welfare visit". | |
Meters cannot be fitted for: | Meters cannot be fitted for: |
customers over 75, without someone else in the home, or anyone with a terminal illness | customers over 75, without someone else in the home, or anyone with a terminal illness |
customers over 75, without someone else in the home, or anyone with a terminal illness | |
people with health conditions that could be worsened by a cold home | people with health conditions that could be worsened by a cold home |
people with health conditions that could be worsened by a cold home | |
those with children under the age of two | those with children under the age of two |
those with children under the age of two | |
those who need a continuous energy supply for health reasons | those who need a continuous energy supply for health reasons |
those who need a continuous energy supply for health reasons | |
households where no-one can top up the meter due to physical or mental incapacity | households where no-one can top up the meter due to physical or mental incapacity |
households where no-one can top up the meter due to physical or mental incapacity | |
About four million households had a prepayment meter in July 2023, according to Ofgem. | About four million households had a prepayment meter in July 2023, according to Ofgem. |
Prepayment meters used to be more expensive than paying by direct debit but the charges are now the same. | Prepayment meters used to be more expensive than paying by direct debit but the charges are now the same. |
What should you do if you can't afford your energy bills? | What should you do if you can't afford your energy bills? |
If you are struggling to pay your energy bills, you need to contact your supplier. | If you are struggling to pay your energy bills, you need to contact your supplier. |
You can ask for a review of your payments and debt repayments, external, payment breaks or reductions, more time to pay and access to hardship funds, external. | |
If eligible you could be added to a list of households entitled to extra support, the Priority Services Register, external. | |
It doesn't cancel your debts but it does show that you are vulnerable, which your supplier should take into account. | It doesn't cancel your debts but it does show that you are vulnerable, which your supplier should take into account. |
Ofgem also recommends asking your supplier to add you to the Network Operator Register, if you rely on energy for medical reasons. | Ofgem also recommends asking your supplier to add you to the Network Operator Register, if you rely on energy for medical reasons. |
Make sure you are claiming relevant benefits and government help. You can check the MoneyHelper benefits guide, external or use the Entitledto, external and Turn2us, external benefits calculators. | |
Pensioners, people on certain disability benefits, and households on means-tested benefits, can get help with energy bills, external. | |
Councils can offer help through the Household Support Fund, external, which has been extended for six months from March 2024. | |
Finally, adjusting settings on your boiler can save money. | Finally, adjusting settings on your boiler can save money. |
Related Topics | Related Topics |
Personal finance | Personal finance |
Inflation | Inflation |
Cost of Living | Cost of Living |
UK economy | UK economy |
Energy service companies | Energy service companies |