BRITISH Gas has made a big change to its energy scheme, making it harder for seven million households to get financial help.
The British Gas Energy Trust (BGET) has cut the number of people who can apply for one of its hardship funds, which offers grants worth up to £1,700.
Millions of households will no longer be eligible for the support[/caption]
The Individual and Families Fund (IFF) was previously open to all British Gas and non-British Gas customers in energy debt.
But now those who pay by credit will no longer be eligible for the help.
From this month BGET will be limited to those just with pre-payment meter accounts.
The change will see millions of households with energy credit accounts locked out of the financial support.
It’s not all bad news though because British Gas customers can still get help with their energy debt through the trust’s other support package – the Energy Support Fund.
This fund provides British Gas credit and prepayment meter customers with financial support worth up to £2,000.
The change to the IFF comes at a time when millions of households are struggling to pay their bills.
This week energy regulator Ofgem confirmed that average energy bills will rise by £111 to £1,849 a year from April 1.
This is £159 a year higher than the price cap set for the same period last year and is the third quarter in a row that costs have increased.
Jonathan Brearley, CEO of Ofgem warned that the cost of energy “remains a huge challenge for many households”.
He added: “Energy debts that began during the energy crisis have reached record levels and without intervention will continue to grow.
“This puts families under huge stress and increases costs for all customers.
“If anyone is worried about paying their bills, I would urge them to reach out to their supplier to make sure they’re getting all the help they can.”
How does the British Gas Individual and Families Fund work?
The Individual and Families fund will now be available to British Gas and non-British Gas customers on pre-payment meters.
To be eligible you must:
- Have between £50 and £1,700 of energy debt.
- Live in England, Scotland or Wales.
- Have not received a grant from the British Gas Energy Trust within the last two years.
- Be seeking a grant to clear an outstanding debt on a current or open gas, electricity or dual fuel energy account.
- The account must be in your name and relate to your main residence.
- Have an open account.
- Be in or facing fuel poverty.
- Have received help from a money advice agency or used the Policy in Practice self help Benefit Calculator tool in the last six months.
The support is aimed at people who cannot access energy debt help from their own provider.
Several suppliers have support funds which are restricted to their own customers.
These are: Ovo, Boost, Eon, Eon Next, EDF, Scottish Power, Octopus, Shell Energy, SSE, Utilita and Utility Warehouse.
Customers of these suppliers should apply to them directly.
You cannot apply for a grant if you do not have energy debt and your application will be rejected.
Financial advice and support is available on the BGET website.
If your grant application is successful your energy account will be credited with the grant.
The trust does not award cash payments.
What do other suppliers offer?
SEVERAL major energy suppliers have support schemes for their own customers who are experiencing financial hardship.
But BGET is the only scheme which offers support to customers of other energy suppliers.
EDF customers who are struggling with energy debt can get help through its Customer Support Fund.
The fund offers grants and support to those who are behind on their bills and provide essential white goods such as a fridge or cooker.
You need to get independent debt advice before you apply for the funding.
To apply visit the Let’s Talk website.
You will need your EDF account number, current debt balance on all EDF accounts you have and details of your household finances and vulnerability.
E.ON Next customers who are experiencing financial difficulties and struggling with their energy bills can get help through the supplier’s Energy Fund.
The fund offers debt support and energy efficient appliances such as washing machines, fridges and cookers.
There are also a smaller number of products including hot water bottles and heated throws that are available to keep customers warm during the colder months.
To apply you will need:
Your electricity and/ or gas account number
Supporting evidence such as proof of any benefits or tax credits received by any adults in your household or proof of any illness in your household that have been diagnosed by a doctor or medical professional.
The supplier will accept a letter, certificate, patient summary or medical summary from a doctor, medical professional or health worker.
Octopus Energy customers can get help through its Octo Assist fund.
It includes free electric blankets, Winter Fuel Payments and standing charge waivers.
To apply you must use its online tool, which will ask you questions about your financial situation.
You may be offered direct bill grants or standing charge holidays based on your circumstances.
What other support from British Gas is available?
British Gas customers with credit or pre-payment meter accounts still can apply for financial help through the British Gas Energy Support Fund.
To be eligible you must:
- Be a British Gas credit or pre-payment meter customer.
- Live in England, Scotland or Wales.
- Have not received a grant from the British Gas Energy Trust in the past year.
- Be seeking a grant to clear an outstanding debt on a current or open gas, electricity or dual fuel energy account in your name or be a member of that household.
- The energy account must relate to your main residence.
- Have a minimum debt of £50 as a pre-payment meter customer, or £250 as a credit account customer.
- Have a maximum of £2,000 gas and or electricity debt.
- Be in or facing Fuel Poverty.
- Have received help from a money advice agency or used the Policy in Practice self help Benefit Calculator tool in the last six months.
The Trust cannot make part payments towards an energy debt and will only consider clearing arrears in full.
In your application you must provide evidence of receiving money guidance or advice such as a letter confirming that it has been provided or a Personal Action Plan.
Applications take up to four weeks to be assessed and you will be notified via the online portal, text or email if you have been successful.
Once your application is approved the payment to your energy provider can take up to two weeks to show in your account.
The trust does not award cash payments.
Last week British Gas announced plans to extend its “You Pay: We Pay” scheme.
The initiative, which was launched in June 2024, matches British Gas customers’ energy debt repayments to help them pay off their bills.
For example, if a customer pays £150 British Gas will pay off £150 too.
This will wipe half of the amount they owe, which could help them to get back on track sooner.
British Gas has also introduced a new feature so its customers can take payment breaks.
This could be beneficial for example if you lose your job or suffer from a period of ill health.
The BGET also funds 41 money and energy advice projects in England, Scotland and Wales.
These initiatives offer support to anyone through fuel vouchers, energy saving devices, energy-efficiency advice and white goods.
You could also get help budgeting, benefit checks and income maximisation.
Some projects can also give you advice on subjects such as housing, discrimination and immigration.
How to cut the cost of your debt
IF you’re in large amounts of debt it can be really worrying. Here are some tips from Citizens Advice on how you can take action.
Check your bank balance on a regular basis – knowing your spending patterns is the first step to managing your money
Work out your budget – by writing down your income and taking away your essential bills such as food and transport
If you have money left over, plan in advance what else you’ll spend or save. If you don’t, look at ways to cut your costs
Pay off more than the minimum – If you’ve got credit card debts aim to pay off more than the minimum amount on your credit card each month to bring down your bill quicker
Pay your most expensive credit card sooner – If you have more than one credit card and can’t pay them off in full each month, prioritise the most expensive card (the one with the highest interest rate)
Prioritise your debts – If you’ve got several debts and you can’t afford to pay them all it’s important to prioritise them
Your rent, mortgage, council tax and energy bills should be paid first because the consequences can be more serious if you don’t pay
Get advice – If you’re struggling to pay your debts month after month it’s important you get advice as soon as possible, before they build up even further
Groups like Citizens Advice and National Debtline can help you prioritise and negotiate with your creditors to offer you more affordable repayment plans.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
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