Martin Lewis' MSE explains how to get free cash to help you pay your energy bill (2024)

Here's a break down of the grants offered by both energy suppliers and the Government - don't miss your opportunity to get support as energy bills soar

Martin Lewis' MSE explains how to get free cash to help you pay your energy bill (1)

Martin Lewis' MoneySavingExpert website has flagged the energy companies that are offering hardship funds worth up to £1,500 as bills continue to rise.

You might find you're eligible for a non-repayable grant that goes towards reducing energy debts.

The money could be a lifeline for many struggling families as energy bills continue to rise at an astronomical rate.

In order to apply, most applicants will also need to have spoken to a debt adviser from an agency like Citizens Advice before applying.

You'll also need to show proof of your income and your living situation, and explain why you're struggling to pay your bills.

Here’s what is available at some of the leading energy companies, as flagged by the MoneySavingExpert team in its latest newsletter.

Are you worried about rising energy bills? Let us know: mirror.money.saving@mirror.co.uk

Cost of Living

Our Cost of Living team of experts are here to help YOU through a very difficult year.

They'll be bringing you the latest money news stories and also providing specialist advice.

Whether it's rocketing energy bills, the cost of the weekly shop or increased taxes, our team will be with you all the way.

Every Thursday at 1pm they will take part in a Facebook Live event to answer your questions and offer their advice. Visit facebook.com/dailymirror/live to watch. You can read more about our team of experts here.

If you have a question - or want to share your story - please get in touch by emailing webnews@mirror.co.uk.

British Gas

British Gas has reopened its hardship fund for non-customers with grants worth up to £1,500 for struggling households.

To be eligible for help, you need to live in England, Scotland or Wales and be in debt to your energy company (not specific to British Gas).

You must also not have more than £1,000 in savings and have received help from a money advice agency.

The easiest - and the free way - to do this is through a charity.

The main ones who will help you with energy bills are National Energy Action, Home Energy Scotland and Citizens Advice.

For existing British Gas customers, there is a separate Energy Support Fund for its customers that runs all-year round.

Through this help, you can apply for a grant worth between £250 to £750.

You have to be in energy debt of at least £250 and not have more than £1,000 in savings.

If you're accepted for a grant through either scheme, the money doesn't need to be paid back.

EDF Energy

EDF supplier has not confirmed the size of the grants it is handing out through its hardship fund.

You will be entitled for the grant if you are experiencing hardship, struggling to manage energy debt.

EDF customers need to register for its priority services in order to access its emergency fund.

You will need your EDF Energy electricity or gas account number to apply, as well as evidence of any benefits your household receives.

EDF will assess your circ*mstances to determine how much of a grant it can award you.

You can apply through the "Let's Talk" web form or by calling 0800 269 450

E.ON and E.ON Next

E.ON and E.ON Next customers can apply for a grant to help clear energy debts.

The funds can also help replace household items such as cookers, fridges, fridge-freezers, washing machines and gas boilers.

There isn't a specific set of criteria and it doesn't say how much you might be able to claim.

However, the energy firm says applications from individuals with the greatest needs will be prioritised.

Apply through the "Let's Talk" web form or by calling 03303 801 090.

Octopus Energy

Octopus Energy offers a number of support options based on circ*mstances and your needs.

For example, it can help you access existing schemes, provide monetary support, or a loan of a thermal imagery camera to find heat leaks at home.

There is no specific eligibility criteria for the Octopus Energy fund - instead the company urges anyone who is struggling to get in touch.

As well as Octopus Energy customers, this is also available to those who are signed up to: Affect Energy, Co-operative Energy, Ebico Living, London Power, M&S Energy.

You can apply through the Octopus web form.

Scottish Power

The Scottish Power Hardship Fund offers grants worth up to £750.

The size will vary depending on need and funds available.

You could qualify if you receive Income Support, Job Seekers’ Allowance, Pension Credit or Employment and Support Allowance.

Households who have a low household income or who have special circ*mstances - such as experiencing an income reduction due to illness - might also be eligible.

The money is debited to your Scottish Power energy account.

In order to apply for the fund, you must first contact a debt advice agency.

You will then need to apply through the web form on the Scottish Power website.

Shell Energy

Again, there is no set limit nor criteria for this fund.

Read more about the £5 million fund here.

This fund is intended to alleviate some of the financial hardship and account debt for energy and broadband customers who need it most.

You can claim this fund by calling Shell on 0330 094 5800.

Utility Warehouse

This hardship fund is in partnership with Citizens Advice.

You may qualify for this fund if you are in fuel poverty, or about to go into energy debt or run out of prepay credit.

The supplier has not confirmed how much the grants are.

Call Utility Warehouse on 0333 777 0777 to apply.

Bulb and Ovo Energy also offer hardship funds but they are not currently accepting applications.

Martin Lewis' MSE explains how to get free cash to help you pay your energy bill (2024)

FAQs

What is the energy Direct Debit? ›

How does energy Direct Debit work? When you switch energy supplier the new supplier will arrange your direct debit to cover what it expects your bills to be — based on the details you provided during switching. For example, you may have your direct debit set at £50 a month.

Is it cheaper to pay by Direct Debit British Gas? ›

Due to the slightly lower rates you receive when paying by Direct Debit, which saves you on average £130 per year, this payment option will alter the rates at which you are charged. Keep in mind that you will need to pay a one-time fee to settle the debt that you owe.

Why are people knocking on my door asking about my utilities bill? ›

Door-to-door scams

A suspicious person who rings your doorbell and claims they work for your energy provider. Door-to-door scammers are more like the stereotypical con man. They impersonate legitimate door-to-door sales representatives and offer to help you get lower rates and save on your energy expenses.

Is a phone bill a Direct Debit? ›

A Direct Debit can only be set up by the organisation to which you're making the payment. Normally, you sign a mandate that gives the company permission to take funds from your account in an agreed way – like a monthly gym membership or your mobile phone bill.

Is Direct Debit safe? ›

How safe is Direct Debit? Direct Debits are covered by the Direct Debit guarantee. This ensures that banks, building societies, and all other payment providers will refund, without question, any disputed payments immediately.

What does it mean to pay by Direct Debit? ›

A Direct Debit lets your bank or building society know that businesses and services can take money from your account on a set date. People use Direct Debits to pay monthly bills and make one-off payments. They're a simple way to manage regular payments, such as: Utility bills.

What are the disadvantages of Direct Debit? ›

While overall, this payment method is safe, secure, and convenient, there are potential disadvantages of Direct Debit to be aware of. You can be charged overdraft or late fees: If there are insufficient funds in the buyer's account, the Direct Debit might still go through with overdraft protection.

Is it a good idea to have a Direct Debit? ›

With Direct Debits, there's no need to remember payments each month. This might reduce the risks of missed payments and late fees. Protection if things go wrong. Under the Direct Debit Guarantee, you'll get a full and immediate refund should a business make a mistake.

Why has British Gas cancelled my Direct Debit? ›

If your payment fails for a second time, we'll have to cancel your Direct Debit and send you a bill instead. And you'll need to pay this in full within 14 days. From then on, we'll go back to sending you bills for the energy you use on a monthly or quarterly basis.

How much cheaper is Direct Debit? ›

Whereas card networks tend to cost around 3 - 5% for transactions, Direct Debit tends to be much cheaper at around 1%.

How long does it take to set up a Direct Debit? ›

After you provide your information, it typically takes between 3 and 10 days to set up a Direct Debit. This process can take up to 30 days, depending on the company. Keep in mind – you may need to make a manual payment to your service provider while you wait for the Direct Debit to be set up, to avoid missed payments.

Is gas more expensive with Debit? ›

Using a Debit Card at Gas Stations

Some stations offer tiered pricing—one for cash and one for credit. In most cases, you'll get the cash rate if you use your debit card. These retailers generally charge their customers less (sometimes as much as a dime) if they pay for their gas with cash or a debit card.

Should I switch to Direct Debit energy? ›

Choosing monthly direct debit means your payments are spread evenly throughout the year. Your energy provider will estimate your annual usage and divide this by 12 to determine your monthly payment. However, keep in mind: Payments may not align with actual consumption due to seasonal usage changes.

How does Direct Debit work? ›

A Direct Debit lets your bank or building society know that businesses and services can take money from your account on a set date. People use Direct Debits to pay monthly bills and make one-off payments. They're a simple way to manage regular payments, such as: Utility bills.

Can I cancel direct energy? ›

If you still prefer to cancel your service with us, you can do so in your Online Account Manager or by contacting customer support. Please note if you change energy providers, you may owe Direct Energy a cancellation fee depending on the terms of the plan you selected.

Is Direct Debit the same as direct deposit? ›

With Direct Debit, the receiving party (payee) initiates the transaction, requesting the bank pull money from the sender (payer) to the receiver (payee). With Direct Deposit, the sending party (payer) initiates the transaction, requesting the bank push money from the sender (payer) to the receiver (payee).

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