UK energy company British Gas has announced an "innovative" new scheme under which it will match payments made by customers to clear energy bill arrears. This scheme aims to help customers clear their debts.
British Gas Makes Matching Payments Towards Arrears
The £15 million scheme will be launched in June and is intended to provide targeted help to those who are, or are likely to be, in fuel poverty. Customers will be matched by the supplier if they are able to pay part of their bill over six months.
For instance, if a customer pays £100 a month, they will pay £600 over 6 months. The company says it will then apply an additional £600 credit to the customer's account, which may also help to reduce any outstanding balance under the new scheme.
British Gas CEO Chris O'Shea stressed the crucial importance of such initiatives in the context of the current cost of living crisis. He acknowledged the continuing challenges faced by households, particularly in light of escalating rent and mortgage costs.
Chris O’Shea stated: “While lower food and energy prices have benefited many households, the cost-of-living crisis remains challenging for some due to recent rent and mortgage increases. At the end of each week or month, some have little to no funds left for basic needs after paying expenses. This is why we’ve allocated £140 million to support those in greatest need.”
Mr O'Shea also stressed the importance of providing targeted support to those most in need, recognising the negative impact of debt on mental wellbeing.
Debt can negatively impact mental health. Most want to pay bills but meeting needs while reducing debt can be difficult. We aim to help customers start anew through this approach and place them on stronger footing after high inflation.
“This program alone is not a panacea. How we assist those unable to afford necessities is a societal issue requiring cooperation. We strongly advocate introducing a social tariff. To truly help people, different thinking is needed regarding assistance. I believe this type of program can immediately and meaningfully improve well-being by reducing debt burdens.”
Partnering for Progress
Richard Lane, Chief Client Officer of debt advice charity StepChange, praised British Gas for its innovative approach to tackling energy bill arrears. He stressed the importance of collaborative efforts between businesses and charities to support households in times of economic hardship.
It’s great to see innovative approaches from companies like British Gas that have the potential to make a real impact for struggling households through this difficult period.
Who is Eligible?
To qualify for the scheme, British Gas will carry out a thorough assessment of customers to determine whether they meet the following general criteria:
- They must currently experience fuel poverty or be at risk of falling into fuel poverty
- They must have recently received debt counselling services or agree to obtain counselling
- They must have been a British Gas customer for a minimum of six consecutive months
- They must pre-approve an affordable payment plan as determined through the evaluation process