Yahoo Finance How to get help with your energy bills in the cold weather
We’ve kicked off 2024 with snow and ice, and the coldest January night for five years. Families across the country will be keen to turn the heating on for longer to stave off the cold, but with the hike in the energy price cap back at the start of the year, an awful lot of them will worry that they can’t afford it.
New government research shows that costs have risen in the past month for around half of us, and among this group almost nine in 10 say energy prices are at least partly to blame. Two in five people who pay energy bills say it’s difficult to stretch to the cost, and one in 20 say they’re behind on bills. The fact there’s no universal payment to cover higher energy bills this year means those who don’t qualify for any other help are finding bills particularly painful.
We’re already doing what we can to stay warm without putting the heating on. Previous government research found that the most common step was to put more clothes on, or huddle under blankets. This was followed by only heating the rooms we’re using, using hot water bottles, and going to bed earlier. Taking steps to increase energy efficiency and cut waste is incredibly sensible at any time, including draught-proofing our homes and adding insulation. But despite everything we’re doing, the most recent data shows that one in five people are either only very occasionally warm at home right now – or they’re never warm enough to be comfortable.
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More people have been forced to turn the heat off and cope with the consequences – and those consequences can be severe – especially for those who are already frail or in poor health. A cold home can be bad for your health and wellbeing, and anyone who is already struggling with mobility, lung problems or circulatory issues could face real risks.
It means we may need to look beyond simply cutting our energy use for a solution. There are a few schemes in place.
6 ways to get help with energy bills
Cost of living payments
There’s a new round of cost of living payments due in February, offering £299 to anyone who claims Universal Credit, income-based Jobseekers Allowance, income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit or Pension Credit. It’s worth checking whether you qualify for even a small payment, which will open the door to a lump sum.
Warm home discount
This is a £150 rebate paid by suppliers between October and March. If you’re eligible, and your provider is part of the scheme, you will usually receive it automatically in England and Wales. You’ll qualify if you’re on Pension Credit or on specific benefits and have high energy costs. However, the government has been in touch with some families asking for more information before it makes the payments, so if they have been in contact, make sure you reply as soon as possible to ensure you get the money.
Grants
Your supplier may offer non-repayable grants to people suffering real financial difficulties. The major energy providers tend to offer them to their own customers – including EDF, E.on Next, Shell and Scottish Power. British Gas Energy Trust offers grants to people who are struggling – regardless of whether they are a British Gas customer. You need to contact them and check their eligibility rules and how to apply. The process can be onerous, so don’t be afraid to ask for help from charities like Stepchange and Citizens Advice.
Cold weather payments
In England and Wales, older people and those on specific benefits will get £25 for each 7-day period between November and the end of March that the average temperature is below freezing. In Scotland this has been replaced by a £55.05 one-off payment made to everyone who qualifies, from the middle of December, regardless of how low the temperature gets.
Your council
The Household Support scheme in England is available from your local council and is designed to help people in really desperate circumstances. They will have specific criteria and an application process, so get in touch and ask.
Your energy supplier
If you don’t qualify for help, and you’re struggling to pay your bills, contact your provider sooner rather than later. Ofgem rules mean they have to offer a number of potential options to help you pay – including an affordable payment plan, payment reductions or time to pay. It’s worth doing what you can to come to an agreement with them. However, if after talking things through with them, you can’t see how you can pay, you can contact a debt charity like StepChange or Citizens Advice and they can work with you to find a solution.
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The positive news is that there is some light at the end of the tunnel. The cold snap won’t last forever (despite the fact it feels like it might), and when we get better weather in the spring, we’re also expecting a fairly significant cut in the energy price cap, thanks to lower wholesale prices.
The fact the cap is set to drop, and some of the volatility has come out of the gas price, means there are also more fixed rate deals on the market at the moment. If you want more certainty, it’s worth checking what’s available. Your provider may have a deal specifically for its customers, and if it’s around 10% cheaper than the price cap, it could be worth considering. Another interesting one in the mix is the E.on Next tariff which promises to always be £50 below the price cap. Your costs will still rise and fall, but will be lower than simply sticking with the cap.
Sarah Coles is a personal finance analyst at Hargreaves Lansdown and co-presents Switch Your Money On podcast.
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