British Gas to start paying energy bills for thousands of customers who need help

The £15 million scheme, which launched last month, will provide targeted support for those customers that are in or facing fuel poverty, helping them to either not fall into debt or to reduce existing debt.

Tens of thousands of struggling customers could be eligible to pay 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 have confirmed that the scheme is currently underway and will run until the £15million funding has all been provided to customers in or facing fuel poverty.

A spokesperson said: "We are currently in the early phase of contacting eligible customers."

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, as they should have reached out to them. Eligible customers will be contacted by post, emails and SMS.

The new scheme forms part of the company’s overall £140million package and is in addition to support already offered via the British Gas Energy Trust (BGET) for all energy consumers.

The trust provided grants of up to £2000 and funding for advice centres and charities.

Debt charity StepChange has called the scheme "innovative" and said it will 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."

"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.’’

The news follows the announcement this week that the UK’s biggest energy supplier reports falling first-half operating profits.

British Gas made £159million, down from nearly £1billion a year ago.

British Gas profits have begun to ease from record high levels last year as the market shows signs of “normalising” after the energy crisis.

The cooling of British Gas profits led to lower earnings for its parent company, Centrica.

Chris O’Shea, Centrica’s chief executive, said the company had performed in line with expectations in the first half of 2024, “against the backdrop of more normalised market conditions”, and signalled that it would start to compete for new customers.