If you’re finding it difficult to pay your energy bills and owe money to your supplier, you’re not alone.
Although the energy price cap has fallen from the record highs of 2022/23, it remains considerably higher than levels seen before the energy crisis.
Ofgem, the energy regulator, has also said that volatile gas prices are a long-term problem, so fluctuations in the energy price cap could be here to stay.
Considering this, it’s no surprise that some households continue to struggle with energy bills, especially during the winter.
And because the energy price cap doesn’t limit your total bill, just the unit cost of energy, your bills will still be high if you need to use more energy. This puts vulnerable households at a significant disadvantage.
Some households may be eligible for financial support with their energy bills, including the Winter Fuel Payment, Cold Weather Payments and the Warm Home Discount Scheme.
Read on to find out more about the energy bill support available.
Winter Fuel Payment
The Winter Fuel Payment is a one-off payment from the government that aims to help people who are aged 66 or older with their heating costs in winter. Households could receive either £200 or £300, usually paid automatically in November or December.
In previous years, people at state pension age were eligible for the Winter Fuel Payment. But to be eligible for the payment in winter 2024/25, you have to live in England or Wales and get one of these means-tested benefits:
- Pension Credit
- Universal Credit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Income Support
- Child Tax Credit
- Working Tax Credit
If you’re eligible, look out for a letter saying how much you’ll get and which account the money will go into.
The amount that your household will receive depends on your age and whether you live alone.
If you live alone, you’ll get £300 if you were born before 23 September and £200 if you were born between 23 September 1944 and 22 September 1958.
If you live with a partner and claim any of the above benefits jointly, one of you will receive the payment. This will be £200 if the two of you were born between 23 September 1944 and 22 September 1958, or £300 if one or the two of you were born before 23 September 1944.
If you’re no longer able to receive the Winter Fuel Payment, it’s worth checking whether you’re eligible for Pension Credit. This is means-tested for those on a low income of less than £218.15 a week for single people and £332.95 for a couple.
There are separate winter fuel benefits in Scotland and Northern Ireland and these will also be means-tested in 2024.
Warm Home Discount Scheme
You could receive £150 under the Warm Home Discount Scheme to cut your electricity bill. If you’re eligible and your supplier provides both gas and electricity, you may get a discount on your gas bill instead.
The money won’t be paid directly to you, but will be taken off your energy bill. Your supplier has to be taking part in the scheme.
The Warm Home Discount Scheme is available in:
- Great Britain to anyone who receives Pension Credit (Guarantee Credit only)
- England and Wales to workers on a low income who have high energy costs (you must receive qualifying means-tested benefits)
- Scotland to anyone on a low income who qualifies under their energy supplier’s criteria
The 2024/25 scheme opens in October 2024 and the discount should be made by 31 March 2025.
If you’re in England and Wales, you should receive a letter between October and December if you’re eligible.
In Scotland, you don’t need to apply if you get the Guarantee Credit part of Pension Credit. But if you’re on a low income and get certain benefits, you need to apply for the scheme directly through your electricity supplier. Exact details on eligibility will vary between suppliers, which only provide a limited number of discounts, so find out more information directly from your energy company.
If you’re on a prepayment meter, your energy supplier will tell you how the discount will be applied. For example, you may receive a top-up voucher you can use for your meter.
You can stay up to date by checking on the Gov.uk website or with your energy supplier.Northern Ireland doesn’t offer the Warm Home Discount Scheme, but it does have the Affordable Warmth Scheme instead.
Cold Weather Payments
You could receive one-off payments when the temperature drops to zero degrees celsius or below for seven consecutive days. This is based on average temperatures in your area. These payments are only available in England, Wales and Northern Ireland.
For every seven-day period when the temperature is below zero degrees, you could receive £25. This should be paid within 14 working days and will be sent to your bank account automatically.
These payments are available between 1 November and 31 March.
You may be eligible to claim a Cold Weather Payment if you receive one or more of the following benefits:
- Universal Credit
- Pension Credit
- Income Support
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Support for Mortgage Interest
However, receiving these benefits won’t necessarily mean you are eligible for a Cold Weather Payment. Find out more about the criteria you need to meet on the Gov.uk website.
You can’t get a Cold Weather Payment in Scotland, but you may be able to get a Winter Heating Payment of £58.75 from December 2024. This payment has the same eligibility requirements as the Cold Weather Payment, but whether you get paid doesn’t depend on the temperature.
British Gas Energy Trust
The British Gas Energy Trust aims to help householders who are financially disadvantaged and find it difficult to pay their energy bills. It isn’t just for British Gas customers, so you could be eligible even if you are with a different supplier.
The trust offers grants to help those in fuel poverty and anyone who is finding it hard to pay off their energy debts. To qualify for a grant, you will need to have received professional advice from a local advice centre beforehand. You can find your nearest centre on the British Gas Energy Trust’s website.
To be eligible for a grant from the trust’s Individuals and Families Fund, you will need to:
- live in England, Scotland or Wales
- owe money to your gas and/or electric supplier
- be experiencing or approaching fuel poverty
- not have received a grant from the trust in the previous two years
- have received professional advice for your financial situation
- pay for your energy with a prepayment meter or credit, for example, paying your bill by direct debit
You must be applying for the grant to pay off outstanding debts to your current gas or electricity supplier in your home.
When you apply, you will need to provide information, such as your most recent energy bill, details about your debts, your income (including any benefits you receive), and the organisation you went to for professional advice.
Additionally, customers of Eon, Eon Next, EDF, Scottish Power, OVO, Boost, SSE and Octopus are instructed to apply for financial assistance directly from their supplier. This is because each of the listed suppliers has its own support fund, and the British Gas Energy Trust seeks to prioritise applicants who cannot access such help.
The British Gas Energy Trust also runs a grant just for British Gas customers called the British Gas Energy Support Fund. When this fund is open, it has similar eligibility criteria to the above fund.
Your energy supplier
Many energy suppliers may offer grants and support to their customers who are struggling to pay their energy bills. It’s worth seeing what schemes are available as they may be able to clear some, or all, of your debts, which can help you to get back on your feet and focus on improving your financial situation.
Even if you don’t qualify for a grant from your supplier, or your supplier doesn’t offer any schemes, you should still contact them if you’re struggling to pay your bills. Together, you may be able to work out a new payment plan, take a break from payments, or come to some other arrangement to help you pay off any debts and manage your bills.
As a last resort, your supplier may ask you to have a prepayment meter installed if you’re not already using one. Some suppliers also have the ability to install a prepayment meter without a customer’s permission, though they must check the household’s circumstances before doing so.
Depending on your situation, it may be worth comparing energy tariffs and providers and seeing if you could find a cheaper option elsewhere.
» MORE: Guide to energy tariffs
Fuel Direct Scheme
If you’re receiving benefits and you’re in debt to your energy supplier, you may be able to use the Fuel Direct Scheme, which is also known as ‘third party deductions’.
Through this scheme, you can choose to have your energy payments taken directly from your benefits. You can also pay for other bills or debts, including rent and water, through third party deductions schemes. The deductions will cover the outstanding debt you owe as well as your current usage.
This is only an option if you receive one of the following benefits:
- Universal Credit (if you’re not working)
- Income Support
- Income-Based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Pension Credit
The amount that is deducted from your benefits to pay your energy supplier will vary. If you’re on Universal Credit, 5% of your benefits will be deducted to pay off your energy bills.
If you receive other benefits, £4.55 per week will go towards paying off your debt each time your benefits are paid.
Organisations you owe money to can ask for deductions to be made from your benefits in order to pay the debt, but this will only be approved if they have tried other methods of receiving the money. You can ask to pay for your ongoing gas and electricity through additional deductions from your benefits. You will need to contact your supplier in order to set this up. Think carefully before choosing to pay your energy debt this way and consider seeking professional advice to help you decide whether this is the right option for you.
If you have any debts, whether they’re with your energy provider or someone else, you may qualify for the Debt Respite Scheme, also known as a ‘breathing space’. This can temporarily stop costs building up on your debts, though it’s not a payment holiday. You will need to see a debt adviser to help you determine if this is the right course of action for you.
» MORE: How can debt charities help?
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