Post updated: August 6th, 2024
During the colder months you may be asking what energy bills help is available to help soften the blow of expensive gas and electricity bills. We take a look…
The Energy Price Guarantee was introduced by the government in October 2022 to help consumers manage their energy bills after the price of energy soared. Thankfully, the price of energy has come down considerably since. The current Energy Price Cap which came into effect on 1 January is £1,928 for a ‘typical’ household using gas and electricity and paying by Direct Debit.
However, as the price cap amount is based on the usage of a ‘typical’ household, if you use more energy than a typical household, you’ll pay more than the price cap and if you use less, your bill will be lower.
But although energy costs have come down, they are still much higher than we’ve been used to in recent years. By comparison, the Energy Price Cap in October 2021 was £1,277, so many of us will be looking for ways to save.
Also, while since July 2023, households without a pre-payment meter no longer received an Energy Price Guarantee discount on their gas and electricity bills, those on a prepayment meter continue to receive a discount which will save a typical customer around £40 a year, to bring their bills in line with what people would pay if paying by Direct Debit. This follows the Government’s commitment to ending the ‘prepay premium’.
Following the huge rise in energy bills and the introduction of the Energy Price Guarantee, the idea of being able to find the cheapest energy supplier by switching was impossible in most, if not all, cases. But thankfully, as the cost of energy falls, the chance of being able to find the cheapest energy bill by switching looks increasingly likely.
For example, new app-only energy supplier Fuse Energy has launched an electricity-only tariff that’s cheaper than the price cap. But there are some downsides such as it only supplies electricity, so if you’re a dual-fuel household and want to switch you’ll have to deal with a different supplier for your gas. So always check the T&Cs before switching.
Also, some energy suppliers offer deals to existing customers. And in some cases, you’ll need to choose a fixed tariff to lock in a rate. But other suppliers offer variable deals that track under the price cap – so shop around to see if you can find a better deal. But always check the T&Cs before switching.
Are you entitled to energy bills help including:
If you’re looking for energy bills help, you may be able to get free or cheaper insulation through the Great British Insulation scheme, previously called the ECO+ scheme. The scheme is open to homeowners, landlords or tenants. But if you’re renting, you’ll need our landlord’s permission before any insulation can be installed.
You may get support if your home:
The types of insulation you may be able to get support to install include: cavity wall insulation, solid wall insulation (internal or external), loft insulation, flat or pitched roof insulation, underfloor insulation, solid floor insulation, park home insulation and room-in-roof insulation.
The government’s Help for Households campaign offers advice on how to cut their energy use, while still remaining warm this winter. Tips include:
And when it comes to energy bills help it might be of interest to know that VAT has been scrapped for homeowners installing energy efficient measures such as solar panels, heat pumps, or insulation until 2027.
Also, in September 2023, it was announced the The Boiler Upgrade Grant, will be increased by 50% to £7,500 to help homeowners who want to replace their gas boilers with a low carbon alternative like a heat pump.
If you’re really struggling to pay your energy bills, agree a payment plan with your supplier.
Contact your supplier as soon as you can. Energy regulator Ofgem says your supplier is obliged to work with you to agree on a payment plan you can afford. You can ask for:
However if you can’t agree on a way to pay, get help from Citizens Advice or Advice Direct Scotland.
Many energy companies offer schemes or grants that offer energy bills help. These include E.on Energy Fund, E.on Next Energy Fund and British Gas Energy Trust. You don’t need to be a British Gas customer to be eligible for help from the British Gas Energy Trust.
But bear in mind you’ll need to jump through a lot of administrative hoops for the application process for this energy bills help. For example, you’ll need to have spoken to a debt adviser first and completed a budget showing your income and spending. And the eligibility criteria varies. However, those in the greatest need are prioritised.
If you’re on a prepay meter and you’re struggling to pay, your supplier must help too. Energy bills help available from energy firms includes:
Also the government’s Fuel Direct Scheme can help you repay a debt from benefit payments. To apply, contact Jobcentre Plus (or your pension centre if you’re on Pension Credit).
So what energy bills help is available from charities? According to Ofgem, Charis has information on grants some charities offer and how to go about applying. While Turn2us has a benefits calculator, a grants search tool to help you find out what support you can get and adviser locator tools. You’ll also find information on benefits and information on help with paying energy and water bills.
If you’re worried about debt then it’s vital to get advice sooner rather than later. You’ll find advice on managing debt problems and budgeting through: