How to cut energy costs If you can’t pay your energy bill

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If you can't pay your energy bills, tell your supplier straight away

Contact your current energy supplier as soon as possible if you are having trouble paying your gas and electricity bills.

Find out if they can offer you any ways to reduce your bill – such as paying by monthly direct debit or signing up for an online tariff. You should also start taking energy saving measures – see our tips for using less electricity and our video guide to cutting your household bills.

Work out what you can afford

If you still can't pay your energy supplier, then contact your supplier to explain your situation and offer to pay an amount you can afford.

All energy suppliers follow a code of practice that means they won't cut off your supply if you agree a payment plan with them and then keep to it.

Check your energy company’s code of practice to find out its policy on helping vulnerable customers. You can do this by checking the About Us section of your gas or electricity supplier’s website, or by giving the company a ring. 

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Utility companies should be willing to set up a payment plan that suits you

Energy suppliers should be willing to set up a payment plan for debt that suits you, even if you have been threatened with disconnection. Debt can be repaid through a variety of means including:

  • Fuel Direct (a scheme where energy payments are made direct from state benefits)
  • Regular payment plans (allowing you to pay weekly, fortnightly or monthly)
  • Prepayment meter (but these are usually fare more expensive)
  • British Gas, EDF and Npower have set up independent charitable trusts to give grants to some customers to help them pay for fuel arrears.

If you fall behind because of poor billing

Inaccurate and erratic billing can cause consumers to run up debts. For example, if you receive a large bill but it’s the first bill you’ve had for some time, contact your supplier. They should be able to arrange repayment of the debt over the same period in which it accrued – so if you haven’t had a bill for 12 months you could get 12 months to repay.

Benefits and schemes to help you pay for energy

Fuel Direct

If you get Income Support or income-based Jobseeker's Allowance and are struggling to keep up with fuel or water bills, you can ask your benefits office to pay them directly out of your benefits. Fuel Direct payments pay for your current fuel use and an agreed amount of your unpaid bill each week. Check your meter reading and then contact your local benefit office.

Winter Fuel Payment

senior at home keeping warm

Most people aged 60 or over can get help paying for gas or electric heating in winter

Most people aged 60 or over can get a Winter Fuel Payment to help them pay for gas or electric heating in winter. This annual tax-free lump sum is normally paid from November and most payments are made by Christmas. Depending on your age and circumstances you could get between £100 and £300.

Extra benefits

Depending on your personal and financial situation, you could be eligible for benefits to help you keep up with your bills and household expenses. Check if you qualify for financial help through the benefits system using the DirectGov website.

Social tariffs

Energy suppliers have to offer cheaper tariffs to their most vulnerable customers. You may qualify for one of these social tariffs if you are:

  • over 60
  • on means-tested benefits
  • have a low income.

However, these social tariffs are being replaced by the Warm Home Discount, which will be completely phased in by 2015. Where social tariffs were voluntary, the Warm Home Discount is compulsory. The only remaining social tariff is from EDF - Energy Assist.

Warm Home Discount

For 2011-2012 this will be worth £120 and apply to two groups.

  • A core group - households that get the guarantee element of Pension Credit, most of these households will be automatically identified by energy suppliers.
  • A 'broader group' - the definition of these vary from supplier to supplier.

Many of those who were on social tariffs will be able to get this annual credit instead. See our guide to the Warm Home Discount for full details of the eligibility criteria set by different energy suppliers. 

Where to find help 

  • If you are having problems with your energy supplier and want to make a complaint read our Dealing with energy suppliers advice guide.
  • If you find yourself getting into debt trying to keep up with household bills, see our How to deal with debt guide for practical advice. The Citizens Advice Bureau (CAB) can also give you free, independent advice on dealing with debt.
  • National Debtline (0808 8084 000) offers free advice over the phone to people in England, Scotland and Wales.
  • If you're having trouble sorting out problems with your fuel supplier you can contact the Energy section of Consumer Focus. It offers free, impartial advice and offers template letters for complaints.

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