What happens if I can’t pay my energy bills amid cost of living crisis?
Households across the UK apparently owe a staggering total of £1.3 billion to energy companies.
That’s a whopping sum, but when it comes to individual households, the cost of gas and electricity – dictated by Ofgem’s soaring energy price cap – can also feel overwhelming.
In protest, some are signing up for Don’t Pay UK, essentially ‘striking’ against the cost of living by refusing to pay for their winter energy supply.
But if you’re in a position where you can’t afford to cover your energy bills at all, what are your options? And what help is available to you?
Here is everything you need to know.
What happens if you can’t pay your energy bills?
If you’ve realised your bills are so out of hand that you can’t pay them, your first move should be to contact your energy company.
Energy expert Myles Robinson explains: ‘Notify [your supplier] that you want to pay off your debt through a payment plan.
‘They should discuss with you ways to pay what you owe them and come to an agreement. When coming to an agreement, your supplier should consider what you can afford to pay based on your income, outgoings, and any other debts you have.
‘They will also consider how much energy you are likely to use in the future by looking at your past usage.’
If a repayment plan fails, you might be told (or forced) to get a prepayment meter installed.
Myles, from Boiler Central, continues: ‘This means you will have to pay for your energy usage upfront and a weekly payment to cover any debts.’
Can your energy supply be cut off if you can’t pay?
Again, your supplier should give you the opportunity to pay through a plan, based on your income and outgoings.
However, if you can’t reach a plan or miss multiple repayments, in extreme cases your supply of energy could eventually be cut off.
‘Failure to reach an agreement with your supplier may also result in them applying for a court warrant so they can visit your home and disconnect your energy supply,’ Myles says.
‘This can be done remotely if you have a smart meter, but your energy company must visit you to identify and assess your situation.’
According to Citizens Advice, most suppliers have signed up to an agreement called the ‘Energy UK Vulnerability Commitment’ – you can check if your supplier has signed up to the commitment by contacting them or checking their website.
If your supplier has signed up, they won’t disconnect you between October 1 and March 31 if you:
- Live with children under 16
- Are disabled
- Have long-term health problems
- Have severe financial problems
- Have children under 6 years old living at home
It’s reassuring to know that, if you do struggle to pay, it may not always affect your credit score, Myles notes – nor will it immediately impact your living situation, unless energy bills are included in your rent.
He adds: ‘If your bills are included in the rent and you stop paying, your landlord may be able to evict you for being in rent arrears…
‘Missing energy bills should not affect your mortgage as the loan is agreed with your bank or building society directly.
‘However, not paying your energy bills can make it harder to remortgage your home or take out a new mortgage in the future and therefore, it is inadvisable to do so.’
Given the above, it’s wise to get ahead of the problem where possible – and know what support you are entitled to.
What help is available for paying energy bills?
Firstly, there are plenty of smart ways to save money on your energy bills.
It’s definitely a good time to wise up on any ways you might be wasting energy, and cut back unnecessary usage.
However, conserving energy may only get you so far if you’re really struggling to pay – and, of course, winter (and the need for central heating) is just around the corner.
It’s important to know there is some help available.
Firstly, the government is providing minimal help to every household in the UK.
As part of the Energy Bills Support Scheme, all UK households automatically get £400 to help with energy bills – split over six months and sent directly to energy suppliers, starting from October 2022.
Those living in Council Tax bands A to D previously received a £150 rebate to help with energy bills in April 2022.
Extra help will also be given to around eight million households on means tested benefits.
This includes a £650 Cost Of Living Payment (half paid in July 2022, second half in autumn), an extra £300 for pensioners who already receive the Winter Fuel Payment, plus £150 one-off Disability Cost of Living Payment, which will help around six million.
Every year, not just this year, energy bill support systems are in place for elderly or vulnerable people.
They include:
People on benefits can also arrange for energy payments to come out of their benefits directly, as part of the Fuel Direct Scheme.
If you have a prepayment meter, and you can’t afford to top it up, you may be able to get a fuel voucher from your local council or by contacting the Fuel Bank Foundation by calling 0800 023 9922 or 0330 088 5765 Monday to Friday between 9am to 5pm.
Alternatively, send an email to fuelbank@charisgrants.com.
Suppliers can also provide temporary credit for those really struggling. Find out who your energy supplier is here, and ask if they have any support available to you right now.
It’s worth exploring which, if any, of these schemes you qualify for, and making sure you get them if you do.
See if there are other areas where you can receive support here – such as with council tax, food shopping, rent or childcare costs – which may free up funds to help you cover other bills.
Finally, there are people you can talk to about this and other financial worries – with a view to not only get the help you’re entitled to, but also improve things over time.
If debt is impacting your ability to cover bills, contact StepChange – a devoted debt charity that can provide advice, tailored support and help you make a plan for managing debt.
You can also call Citizen’s Advice’s free energy helpline at 0808 223 1133. It’s open Monday to Friday, from 9am to 5pm – or use the online form or texting option.
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