British Gas has announced a new ‘You Pay: We Pay’ initiative that is first of its kind in the energy sector, where it will 100% match energy payments made by customers who are struggling and most in need of help.
The £15 million scheme launching in June 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 customers that are eligible for the help will be identified proactively and receive the support after an assessment by one of our specifically trained advisors - customers do not need to contact British Gas to apply.
British Gas will match payments made by those who can afford to pay something over a period of six months and there is no minimum level of debt balance for them to qualify. For example, a customer paying £100 a month will pay £600 over 6 months and we will pay an additional £600 credit on their account, which may also help towards clearing an outstanding balance owed.
The company has committed millions to helping households since the start of the energy crisis – offering the most voluntary support ever provided to UK customers by an energy company. The new scheme forms part of the company’s overall £140m package and is in addition to support already offered via the British Gas Energy Trust (BGET) for all energy consumers, including grants of up to £2000 and funding for advice centres and charities.
Chris O'Shea, group chief executive, Centrica
While customers will benefit from the ‘You Pay: We Pay’ scheme, we know affordability is a real problem and it might not be the whole solution. Customers with a significant debt can still make an application to the Trust while participating in this initiative.
Chris O’Shea, CEO of Centrica, parent company of British Gas, “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. At the end of each week or month there will be those that have little, if any, money left after paying for life's essentials. That’s why we’ve put £140 million 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.
“This scheme isn’t a silver bullet. How we support people who struggle to afford life's basic necessities is a wider societal issue and this is why we are a strong advocate for the introduction of a social tariff. What we need to do is think differently about how we help people and I think this is the sort of approach that can have real and immediate impact on people’s well-being by helping them reduce the burden of debt.”
Richard Lane, Chief Client Officer at debt advice charity StepChange, ‘‘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.’’
