All the help you can get with energy bills worth up to £4,000

OFGEM’S latest energy price cap officially came into effect on Monday July 1, meaning many households will see a £122 reduction in their yearly bill. 

The average household will now pay £1,568 a year on their energy bill, which is the lowest level in two years.

EPA

Many of the UK’s biggest energy suppliers have grants in place to help support struggling customers[/caption]

But energy costs are still much higher than what they were a few years ago, so if you are struggling you may be eligible for support in the form of cash or having your debt written off. 

It comes as figures released today showed some 6.1 million households are still struggling to pay their energy bills.

A new study by Ofgem show energy debt levels stand a a record £3.1 billion.

“The fall in the price cap will alleviate some of the pressure many households are under, but our findings show that many more will continue to struggle as energy bills remain high,” Steve Vaid, chief executive of the Money Advice Trust, the charity that runs National Debtline, said.

“As millions of people worry about keeping up with their energy payments, arrears levels have continued to increase and many have been left with unaffordable debts as a result.

“Anyone struggling with their energy bills, or worried about their finances, should contact National Debtline as soon as possible – our advisers are here to help,” he added.

Read below to find out what help is out there and how it can save nearly £4,000 on your bill. 

Energy grants – worth up to £2,000 

Many of the UK’s biggest energy suppliers have grants in place to help support struggling customers. 

But eligibility criteria varies depending on the supplier and the amount you can get depends on your financial circumstances.

The country’s biggest supplier British Gas has an energy grant scheme in place, with the hardest pressed households receiving a grant of up to £2,000 this year.

Typically, the families supported are in, or at risk of, fuel poverty – in addition to this 30% of clients supported are single parent families, 61% are living with a disability and 20% are food bank users.

The firm also has also launched a new debt reduction scheme called ‘You Pay: We Pay’.

Struggling customers will also be able to get part of their debts wiped via what’s known as debt matching.

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.

The £15 million “You Pay: We Pay” scheme will open in June and eligible customers will be contacted directly – they won’t need to apply.

Elsewhere, fellow supplier EDF has a customer support fund which on average wipes £1,250 off customers’ bills. 

It is available to vulnerable customers experiencing hardship. 

To apply you must visit EDF’s website and make sure you have details of your account number (find it on your energy bills or EDF emails) and the current debt balance on all EDF accounts you have.

Check directly with your supplier what help is available.

Household Support Fund (HSF) – up to £500

Struggling households can apply for support via the Household Support Fund (HSF).

The scheme, which is funded by the Department for Work and Pensions, was first launched in 2021 but has been extended a number of times. 

Funding is given to local councils to distribute, so the amount handed out varies across the country.

But in the past some families have had up to £500 help.

How much you can get also depends on where you live, but the sum should be paid as a direct bank transfer or on receipt of an electricity bill. 

Check in with your local council if you would like to see if you are eligible to receive the fund.

Switch to a direct debit – £100

Many households will still end up paying around £100 more each year than those who pay with a direct debit or a prepayment metre. 

For many households the cheapest way to pay is via a direct debit. 

Sometimes this is because energy suppliers offer a small discount if you choose to pay using this method. 

The typical household that pays their energy bill by direct debit will pay the following rates:

• 22.36 pence per kWh (for electricity) 
• 5.48 pence per kWh (for gas)

A typical household using a direct debit payment method will be charged £1,568 over a year for typical use. 

Meanwhile, a household who pays on receipt of their bills will pay £1,668 over the same period. 

• 23.54 pence per kWh (for electricity) 
• 5.77 pence per kWh (for gas)

If you are keen to switch to a direct debit you should get in contact with your supplier and see if they can offer you a better deal than what you are currently paying. 

It is important to speak to your supplier before you make the switch. 

Free electrics and gadgets – £10s

Octopus Energy is handing out freebies such as electric blankets as part of its Octo Assist fund.

Analysis by the firm shows that customers with electric blankets saw a 20% fall in their gas bill, while only increasing their electricity usage by 0.2% – adding up to an average saving of £150 across winter.

The energy firm, which serves six million customers, is also loaning thousands of thermal imaging cameras to customers so that they can find spots in their homes where heat was escaping.

Once those draughts are identified, people can then look into ways to get them fixed and thus reduce their energy usage. 

We have asked suppliers if they intend to roll out seasonal gadgets to help support customers over the summer months.

Free insulation’s or boilers – £1,000’s

Low income households may qualify for major discounts on installing boilers or insulating their homes.

For example, the Energy Company Obligation, set up by Government, lets households on certain benefits apply to have energy-saving measures installed in their homes.

It might mean cavity wall or loft insulation, or maybe even a new boiler fitted, sometimes for free.

To qualify you usually need to be on one of the following benefits

• Pension Guarantee Credit
• Income-related Employment and Support Allowance (ESA)
• Income-based Jobseeker’s Allowance (JSA)
• Income Support
• Tax Credits (Child Tax Credits and Working Tax Credits)
• Universal Credit
• Housing Benefit
• Pension Credit Saving Credit

Households’ needs are assessed on a case-by-case basis, so there’s no guarantee you’ll get help, but it is worth looking into.

Cold weather payments – £25

You may get Cold Weather Payments if you’re getting certain benefits.

You will get a payment if the average temperature in your area is recorded as, or forecast to be, zero degrees celsius or below over 7 consecutive days.

The amount is £25  for each 7 day period of very cold weather between 1 November 2024 and 31 March 2025.

The scheme is currently closed, but it is worth keeping mind when the winter approaches.

The Warm Home Discount Scheme

You may be entitled to a £150 discount off your electricity bill as the days get colder over winter.

The warm home scheme is a one off payment and applications open again in October 2024.

If you’re eligible, your electricity supplier will apply the discount to your bill. The money is not paid to you.

You’ll usually get the discount automatically if you’re eligible. You only need to apply if you’re on a low income in Scotland – contact your energy supplier to apply.

You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity and you’re eligible.

It is important to contact your supplier to find out.

Emergency pre-payment top

You can get temporary credit from your supplier, but you will have to pay this back.

You may also be able to get a fuel voucher.

This is a code given to you in a letter, text message or email which you can use to add credit to your gas card or electricity key. 

Contact your local council, food bank or Citizens Advice to find out more.