What happens if you can't afford to pay?

LADYXXMACBETH

I did apply for the warm homes discount. Didn't get it. 
I'm on the priority list as I have a disabled member of the family and I'm an unpaid carer. 
I'm just thinking that there's going to be many people really struggling come October. But probably struggling in silence. 
I could go without gas potentially, but electricity I couldn't live without. 
There's already been warnings about people burning timber in their homes. Iean what has the world come to? 

SAC2334

Credit meter debtors are either switched to prepayment meter mode if you have a smart meter or if you have a none smart meter then they will fit a smart meter and load the whole debt onto the meter and agree a weekly repayment amount . If you can t afford to pay then the meter go s to emergency credit then it will switch off all electric . Occupiers will have to cut down other none essentials .
The max debt repay used to be £16 a week max  £4 min ,this could have changed as its 5 years since I was on the job meter reading 
 .Anyone with as much as £800 arrears would be allocated £16 max weekly repay 
Handing over the debts to debt repay company would be a last resort 

wild666

LADYXXMACBETH said:

I'm concerned coming towards this winter what happens if I can't pay. 
I'm already struggling to afford my £228 DD and it will go up in October. 
I'm assuming that they would force me to have a prepayment meter put in, but what happens when you can't put money into it? Do you just go without? 
What happens when you don't put money into it? Where does the debt go? If it goes to a debt collection agency and you're already in debt then it won't get paid. 
It's slightly hypothetical, but I think it could be a reality for some come this winter. 

Do you leave loads of appliances in standby mode? There are only three that need to be on 24/7 and they are the fridge, freezer and router everything else can be switched off at the socket when not in use, even the cooker and washing machine if you can access the sockets and the microwave if you have one they are all using vampire power. I'm saving £18 per month by switching everything not in use off at the socket. Leave nothing plugged in that you aren't using and you will soon see the savings.

In the case of gas try lowering the temperatures on the boiler to 50 degrees for water and 55 degrees for heating and turning down the thermostat to 18 degrees, this step might have to be done by lowering the thermostat by one degrees per week until you get to 18 degrees or lower in a well insulated home.

People say it's only a few pounds here and there by turning appliances off but the savings do mount up over the year if you want to save money.

Sea_Shell

SAC2334 said:

Credit meter debtors are either switched to prepayment meter mode if you have a smart meter or if you have a none smart meter then they will fit a smart meter and load the whole debt onto the meter and agree a weekly repayment amount . If you can t afford to pay then the meter go s to emergency credit then it will switch off all electric . Occupiers will have to cut down other none essentials .
The max debt repay used to be £16 a week max  £4 min ,this could have changed as its 5 years since I was on the job meter reading 
 .Anyone with as much as £800 arrears would be allocated £16 max weekly repay 
Handing over the debts to debt repay company would be a last resort 

What sort of timescales are we talking about here, from last top up (of any amount) to disconnection?

pochase

brewerdave said:

pochase said:

northernstar007 said:

isnt there a hardship fund with your supplier?

What do you think how long hardship funds will last with the new expensive energy.  A record number of people won't be able to afford energy at the new rates and would need the help.

At the same time the profits are down or even loss for the suppliers, so there is no funding to increase them.

IF the increases in the October cap are anywhere near the gloomy end of predictions, I can see 100.000s of customers being in the same boat as the OP.

Completely agree with you, 100.000s seems to be even a low number for me.

Question here is what possibilities are there  to avoid this. How do you qualify where there is "real" fuel poverty and where it is self inflicted.

Do I qualify if I still have my hot tub running and an energy bill of £400 and my salary is low enough? On the other hand you cannot just say there is a maximum on energy you are allowed to use, what about sick or older people who need more heat.

The current help of the 150£/200£ is just giving something to everybody, completely not looking for the need the people have. And we are not alone here with this approach, I know for example Germany gives €300 to tax payers plus €100 per child. Guess how much money pensioners get - nothing, they don't pay taxes and they don't have children under 18.

On the other hand I would feel cheated if the help is just been given just need based without looking into the energy use of the person and if they are still wasting it while I try to reduce my cost, but who is going to check this, and how much would the administration cost?

brewerdave

pochase said:

brewerdave said:

pochase said:

northernstar007 said:

isnt there a hardship fund with your supplier?

What do you think how long hardship funds will last with the new expensive energy.  A record number of people won't be able to afford energy at the new rates and would need the help.

At the same time the profits are down or even loss for the suppliers, so there is no funding to increase them.

IF the increases in the October cap are anywhere near the gloomy end of predictions, I can see 100.000s of customers being in the same boat as the OP.

The current help of the 150£/200£ is just giving something to everybody, completely not looking for the need the people have. And we are not alone here with this approach, I know for example Germany gives €300 to tax payers plus €100 per child. Guess how much money pensioners get - nothing, they don't pay taxes and they don't have children under 18.

On the other hand I would feel cheated if the help is just been given just need based without looking into the energy use of the person and if they are still wasting it while I try to reduce my cost, but who is going to check this, and how much would the administration cost?

Except that it isn't to everybody - eg If you live in a modest semi classed as E for Council tax purposes ,then you don't get the £150 regardless of means -as per your example in Germany, pensioners on a basic State Pension may not qualify . Furthermore the £200 is a "loan" that has to be paid back. 
 I've said repeatedly that it should be on the basis of ability to pay ie via the tax system.. I agree that it doesn't penalise the heavy energy users but can't see an answer to that one without an enormous amount of intrusion into personal lives. I have a perfect example of the unfairness in my road with a Doctor and his Dentist partner, both working full time but who will get the £150.

Mstty

@brewerdave I am forming a different opinion. In my mind Band E properties have a decent value and therefore the owners have a few more options available to them. 

If before the energy crisis they were still paying £300-400 each year on Council Tax above a band D property and were happy with that they can downsize if need be, pocket some cash and save £300-400 on council tax alone to help with any energy bills.

It's down to tough choices, tough choices millions will have to make this October. 

Gerry1

Mstty said:

If before the energy crisis they were still paying £300-400 each year on Council Tax above a band D property and were happy with that they can downsize if need be, pocket some cash and save £300-400 on council tax alone to help with any energy bills.

That's not exactly money saving advice.  Moving is likely to cost tens of thousands of pounds: stamp duty, estate agent's fees, removal costs etc.  You'd never recover the costs via a slightly lower Council Tax.  In fact, the council tax may even increase if the new property is in a different local authority area.

Living in a Band E property doesn't necessarily mean you have a high disposable income.  Many people are asset rich (on paper) but income poor, e.g. widows, those made redundant, those in regions where property values increased etc. etc.

BooJewels

LADYXXMACBETH said:

I did apply for the warm homes discount. Didn't get it. 
I'm on the priority list as I have a disabled member of the family and I'm an unpaid carer. 

In that case, you might qualify for Carer's Allowance.  That might bring some extra funds into the household.

theoretica

There are a number of ways this could be approached to target assistance. Many of the people who are most vulnerable to lower temperatures will already be on databases - getting pensions, disability related benefits, babies registered for child benefits.