Let us know if you’re struggling

Between the energy price rises, the end of furlough and the reduction in Universal Credit, it’s a difficult time for many families and households across the UK. If your finances are affected, we are here to help.

Energy prices

At the beginning of October, the price cap on default and standard energy tariffs went up  12%, to £1,277 per year for a ‘typical’ user. And it’s expected to go up again in April next year.

We usually recommend using a price comparison site to look for the best possible deal. But right now isn’t necessarily a good time to try to switch provider. Unusually, the ‘standard’ tariffs – to which the energy price cap applies – are currently cheaper than other tariffs providers are offering.

If you’re on a fixed tariff right now that is cheaper than the new price cap (check any letters you have from your energy supplier, or give them a call), you will probably save money by staying on it as long as you can.

The price cap looks set to increase again next year, so you could decide that you’d like to switch to a more expensive fixed rate tariff now, which would remove the uncertainty around future price raises. But bear in mind you’ll be paying more for your energy now.

If you find yourself really struggling with the cost of energy, and are worried that you might not be able to afford your bill (or may have to cut back on other essential spending) here’s what to do:

• Contact your energy supplier. They may have payment options or grant schemes available to help you, and prepayment customers may be able to access emergency credit.
• If you’re one of our Debt Management Plan, IVA, Trust Deed or DAS customers, let us know you’re struggling so we can help you go through your budget.
• Our advisers can also use a benefits calculator to assess whether you’re entitled to any financial support, such as Winter Fuel Payments or the Warm Home Discount – or you can use one of these calculators yourself on the government’s website.
• And of course, it’s always a good idea to check you’re saving energy wherever you can. Visit the Energy Saving Trust website for ideas.

On the other hand, if you’re currently in credit with your energy bills, we’d recommend keeping a record of that – especially if you are with a smaller provider. If you get your bills online, go onto your energy provider’s website once a month to take a screenshot of your credit balance. This is so that you can prove you had that credit, and ensure you keep it, if…

…your energy supplier goes bust

Don’t panic! You won’t lose your energy supply. You’ll be transferred to a new supplier and will then be protected by the price cap. Read more on the Ofgem website.

Has your income gone down?

Whether you’ve been affected by the Universal Credit cut, lost your job due to the end of furlough, or lost out on income for any other reason, there are three things you should do:

• If you’re one of our IVA, Debt Management Plan, Trust Deed or DAS customers: let us know. We’ll look at your budget and see how we can help.
• Use a benefits calculator to check if you’re entitled to anything else.
• Check out pages 6-7 of our Debt Action Plan for tips on increasing your income and cutting your spending.

 

Whatever’s going on, we can help you through it. Hang in there – and always be ready to ask for help if you need it!