Advice from our energy team as winter fuel bills rise

Winter (and the cold weather that comes with it) is a busy time for our energy advice team.

With temperatures dropping and more time spent inside as the days get darker people’s bills see a noticeable spike.

This year is particularly hard in part due to the increase in the energy cap, which went up ten percent in October, but also the controversial change to the winter fuel allowance.

Placing this within the wider squeeze of people’s budgets it’s not hard to see why fuel poverty is unfortunately on the rise across the UK with projections that 6 million UK households will not be able to adequately heat their homes. 

This is why, as well as providing services to those experiencing fuel poverty, we call for changes to the systems and policies which affect people in our communities too.

We’re calling for the introduction of a social tariff for energy for those on low incomes and with disabilities or chronic conditions, but we believe the Government must also consider older people with low incomes who may not be receiving benefits, and those who are working but whose incomes are lower-than-average.

Fuel poverty has detrimental impacts on people in many ways, including physical and mental health, isolation and loneliness, and child development, so it is crucial that it is addressed as part of a wider anti-poverty strategy. 

As energy advisors we often work with people experiencing fuel poverty and have shared some tips on how to help reduce bills previously.  However, as the weather gets colder the savings that these tips can provide can get lost in the large increase in bills that people see.

Heating becomes a necessity in the colder months especially for those with medical conditions aggravated by low temperatures such as COPD or arthritis. Additionally, constant exposure to temperatures below twenty degrees can have serious effects on health.

But, despite that, unfortunately, we’re seeing increasing numbers of people stating that they will be reducing their heating this winter or simply leaving it off altogether.

When faced with people in this situation our advice is very clear, please use your heating even if you’re worried about the costs as there are options open to everyone. If you or anyone you know feels that they may be unable to pay for heating this winter, we have compiled a plan of action to help:

Contact your supplier  

The first step should be to get in touch with your energy supplier and explain the situation to them. All UK energy suppliers have a duty to ensure that vulnerable customers have the support they need, and they make sure that these vulnerabilities are logged on each company PSR (Priority Service Register). Being on this list entities you to certain support but also ensures that your supplier is aware of any reasons why you may be struggling to afford your heating.

Assess your payment method 

People can pay for energy in a variety of ways from direct debit to prepay depending on what they feel is right for them and their meter type. This can also influence what options you have if you cannot pay for the cost of your heating.  

For people who top up their meter either by phone or at a shop you can request additional emergency credit from your supplier if you cannot meet your costs. This will then be added as debt on your meter and paid off when you next top up.

If you’re worried about being able to afford this, most suppliers will offer reduced repayment rates for those struggling with rising costs. Those on prepayment meters can find cold weather a particular danger as running out of top ups on the meter will result in your supply being shut off. If this is something that happens – often either due to lack of funds or an inability to make tops up due to health issues – you may be best changing your meter type.  

For those who have a credit meter and pay for energy through regular billing the situation is different. In our experience most people pay for this through a direct debit having a set amount of money taken from their account each month. However, others pay on demand, paying the bill when it’s sent through to them. It is this last payment option where we find the most amount of worry over winter, as people are less insulated from the rise in cost that come with winter, having to pay higher bills on demand. Setting up a direct debit can help with this as it is designed to spread the cost over the year rather than subject people to uneven bills over winter.   

Set up a plan that works for you

If you decide to set up a direct debit it’s important to make sure that it is going to cover fully cover your usage. When creating a direct debit most suppliers will run a direct debit health check.  

This works by your energy company looking at your total costs for the year and dividing it up into twelve monthly payments. However, your actual usage will not stay consistent over those months and will fluctuate.  To help demonstrate this, let’s look at someone we offered support to this year and how their direct debit spread the cost of energy across the year:  

The energy company projected this person’s annual energy costs to be £1,818 and to pay for this they set up a monthly direct debit of £151. However, through winter their bills were much more than this rising so that by the end of February, they were £210 in debt.  They were concerned and believed that they would have to pay this all-in-one go. When we called the company to discuss the issue, we were informed that this was completely normal and was to be expected over winter.  
 
They monitored their bills and as the months turned warmer, their bills decreased; by keeping the direct debit payment consistent (at £181) their annual bill was balanced over the year.   

This case demonstrates how those with concerns about energy debt through winter can use direct debits to help spread the cost over the year. Debt and concerns about how this could affect your life our understandable but a small debt over the winter months is a feature of paying via monthly direct debit.  

 Contact support 

A common problem that we are coming across in communities is people suffering in silence. This is particularly an issue when working with older people or those who don’t traditionally view themselves as needing support.

It can be hard to view yourself as needing help, while it is easy to look at others around you as more deserving of it. Despite this, fuel poverty can affect a wide range of people and with many of Britain’s homes being older and poorly insulated, people who may otherwise seem comfortable can struggle with heating their homes to a level they can afford. 

Despite these challenges, support is out there with energy companies pledging to offer £500million in support as part of the 2024 Winter Energy Commitment. This will see households supported with standing charge breaks, extended credit on prepayment schemes and debt write-offs through applications to energy trust funds.

These are outcomes which Caritas has been working hard to achieve for the people we support this past year. With £24’968 of financial savings achieved through liaising directly with people’s suppliers. We also recognise that individuals facing a struggle to pay their bills may need support with rising food costs as well, as such we work closely with our Lalley Centre food pantry in Collyhurst and foodbanks across south Manchester.

It is therefore important to reach out if you’re worried this winter.

The actions we have listed can be time-consuming and a little daunting if you are not confident with them, but our team is available to support and assist with those struggling with high winter energy costs.

Please get in touch with any queries or problems you may be facing: energyadvice@caritassalford.org.uk