British Gas will match debt repayments made by struggling customers, via a new initiative.
Tens of thousands of struggling customers could be eligible to fork out 50 per cent less when clearing their arrears.
For example, if someone pays £100 a month, this will add up to £600 over six months - British Gas will then pay an additional £600 credit on their account.
British Gas said this initiative can help people avoid falling into debt, as well as clear any outstanding payments.
They announced the new scheme ‘You Pay: We Pay’ today which is the first of its kind in the energy sector.
The £15million scheme will provide targeted support for those customers that are in or facing fuel poverty.
The £15million scheme will provide targeted support for those customers that are in or facing fuel poverty
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This will help them to either not fall into debt or to reduce existing debt.
Customers that are eligible for the help will be identified proactively and receive the support after an assessment by one of the firm’s specifically trained advisors.
Customers do not need to contact British Gas to apply.
Chris O'Shea, chief executive of Centrica and parent of British Gas, said: "While it's been good news that food and energy prices are falling, for many households the cost-of-living crisis is far from over, not least because of the more recent increases in rent and mortgage costs.
"That’s why we've put £140million into supporting those who need help the most. We know debt can have a corrosive effect on mental health.
“Most people want to pay their bills, but it can be very difficult to pay for what you need and clear debts.
"We want to try and help customers wipe the debt slate clean with this new approach, and to put our customers on a better footing to recover from this period of high inflation."
Debt charity StepChange has called the scheme "innovative" and said it'll give those trapped in a debt spiral a new hope.
Richard Lane, chief client officer at debt advice charity StepChange, said: ‘‘At StepChange, we know all too well that the rising cost-of-living has been devastating, pushing more and more families into debt.
“We also know that many households will need support to clear arrears that have built up that will otherwise risk trapping them in debt and financial 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.
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"Of course, during difficult times, there’s always more that will need to be done, but a combination of financial support and access to holistic debt advice from charities like StepChange can put people on a pathway to manage their bills and become debt free.
“We will continue to work closely with British Gas to support their customers and refer households to this new initiative.’’
