Four ways to help you tackle rising energy costs and avoid ‘fuel poverty’

A RECORD 15million of us will struggle to pay for our energy after the looming 50 per cent rise in bills.

The new price cap, set to rocket from £1,277 to around £1,900 for an average household from April, will be confirmed on February 7.

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It will push 15million people into “fuel poverty”, when households find it hard to pay for energy as it accounts for more than ten per cent of income.

The Resolution Foundation, which carried out the study, said: “Low and middle-income families will find it hardest to cope.”

Five million people are already living in households in debt on energy bills, owing more than £700 on average for electricity and £600 for gas, according to Citizens Advice.

Your supplier must give you longer to pay if you are struggling and could even scrap any debt.

Benefits trim bills, while insulation grants reduce heating costs.

And everyone can save by following Sun Money’s essential hacks to cut energy use amid the wholesale gas price boom. The Sun on Sunday’s Squeeze Team this week has also helped single mum Symone McKitty-Smith cut her bills.

Moneysavingexpert.com said: “Energy firms have funds to help if you’re in debt.

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“Also check if you qualify for benefits and look for energy-efficiency grants.”

Take control

GET DEBT WIPED OUT:

ALL major suppliers have hardship funds. Struggling customers can apply to have some or all of their energy debt cleared. People on low income, on benefits or with a long-term medical problem are prioritised.

The British Gas Energy Trust accepts applications even from non-customers. It usually caps payouts at £1,500. Apply online.

SAVING: Up to £1,500

CLAIM BENEFITS:

A MILLION pensioners who are not claiming pension credit – worth £60 per week – also miss out on the Warm Home Discount. That deducts £140 per year from energy bills for those getting pension credit and other benefits, plus for some low-income households.

Over-65s should receive a Winter Fuel Payment of between £100 and £300 too. And low-income families can apply to councils for some of the new £500million Household Support Fund for help towards bills.

SAVING: £400-plus per year

BAG GRANTS:

ENERGY providers offer grants for some customers for a new boiler and loft/wall insulation, meaning lower power use and cheaper bills. Those with an annual income under around £16,000, or on benefits, qualify. Power firms provide payouts via the Energy Company Obligation scheme, even to non-customers.

Contact suppliers.

SAVING: Up to £1,000 for insulation, or £2,000 for a new boiler

REDUCE ENERGY USE:

SLASHING kWh consumption and “greening” your home is a win-win. It cuts your bills and your carbon emissions at the same time. Here’s how:

• Do the basics. Turn off the heating when you go out and radiators in rooms not in use. Nudging the thermostat down just 1C will save you around £80 a year at today’s prices – and much more once prices spike in April. Want the kitchen warm but only for breakfast? Use a timer. Many boilers have them built in.
•  Go green. Stop cursing drafts and pay a professional to fix them. Thicken your loft insulation and beef up your cavity wall insulation. Budget £1,000 for drafts and insulation costs – then pocket big savings year-on-year on bills. Got a naked metal hot-water tank? Give it a £20 thermal jacket and save £60 each year, as it will stay hot for longer.
• Be smart. Electronic smart meters show customers exactly how much power they use. That encourages people to think about ways to cut consumption, so the gadgets have never been more important. Call your supplier for a free installation.

SAVING: £300 per year

Jumper on and heating down

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A FAMILY of four faces a £1,200 increase in their energy bill after moving house – but will save £200 by turning down the thermostat a couple of notches.

Scientist Max Veltman, 40, and wife Sarah, 39, a health worker, paid £1,111 each year on a fixed tariff with Green until the firm went bust in the autumn.

They lost that deal and after moving to a bigger house, their new variable-rate £1,644 Eon contract could soar above £2,300.

Max, from Birmingham, who has two kids with Sarah, said: “People should check what support is available and do what they can to cut use. We’ve turned our thermostat down 2C to 18C and I put an extra jumper on. Previous generations did it – why can’t we?”

This post first appeared on thesun.co.uk