British Gas’ scheme is set to light up homes across the UK with £10million more support for struggling customers ahead of the anticipated April price cap rise. Experts at Cornwall Insight are expecting a 5% price cap increase, which could see the average house paying £85 more on energy per year.
To combat this, British Gas is extending the You Pay: We Pay initiative for certain customers. The scheme will see the energy provider match 100% of the payments customers make, potentially reducing energy debt or preventing it from building up in the first place.
To take part in the scheme you will agree on a fixed direct debit amount for six months with British Gas that is affordable for you and the supplier will also add their equal share. For example, if you make a £50 payment each month, British Gas will also make a £50 payment into your energy account each month.
By the end of the six months, your account will have received £600 in payments while you would have only paid £300. It’s hoped that this support will help people clear energy debts they may have built up over the winter.
The energy supplier will reportedly send over 600,000 letters this month to customers who may be eligible for the support. It is also encouraging all of its struggling customers to check if they are eligible for any other energy support available.
Chris O’Shea, Group Chief Executive of Centrica, parent company of British Gas said: “We know this winter has been particularly tough for many households, and it’s not always easy to keep on top of growing bills. We want to make sure as many customers as possible get the support they need and that’s why we’re extending our ‘You Pay We Pay’ scheme.”
To be eligible for the You Pay: We Pay scheme, you must have been a British Gas customer for at least six months. You must also be financially able to make payments by Direct Debit but there is no minimum amount you have to contribute.
As part of the supplier’s checks, you may have to have a disposable income assessment by Open Banking checks or through a debt charity. The scheme is also currently only available to customers with a credit meter, while other support could be better suited for prepayment meter customers.
The initiative was originally launched last June but the £10million extension is part of a broader £140million support package by British Gas. This includes other types of energy support for customers such as £2,000 grants through the British Gas Energy Trust.