£400 DISCOUNT USED FOR DEBT

pochase

HowMstty said:

You could look at it this way if they do enforce this going off your debt.

Oct-March you will reduce your debt by £400 plus 6 lots of £24 so you will have reduced your £1000 debt by £544!!

Then you can renegotiate the remaining £456

How do you get the idea that he does not have to stick with the agreement?

If you don't pay the 6 x £24 they are of course not deducted from the debt. They will just deduct the £24 from whatever amount he tops up anyway first before adding the rest to the meter.

You cannot eat you cake and keep it.

SammiJxx

I am already struggling each month with all other rising costs so trying to find over £100 each month for my gas is already worrying me.
I am currently putting about £20 per month on to try and build up my credit before the winter

[Deleted User]

SammiJxx said:

If I am currently paying £225 per month and they give me £66 / £67 voucher, then I will only be paying £159 / £158 per month. 

The debt has been spread over 5 years at £24 per month, with £400 deducted, over 5 years that is only £6.66 less per month.

Are you sure that you understood the answer? A supplier’s first priority will always be the repayment of any debt. This does not mean that it can change the terms of the agreement that it has with you.

If £225 remains unchanged as your monthly payment, then your DD payment will be reduced by £66 to £159.

As far as your energy account is concerned, the supplier is still receiving a total credit of £225 - from you and the Government. Your energy account will be credited with £24 going towards the debt, with £201 going towards your future energy charges. 

Mstty

pochase said:

HowMstty said:

You could look at it this way if they do enforce this going off your debt.

Oct-March you will reduce your debt by £400 plus 6 lots of £24 so you will have reduced your £1000 debt by £544!!

Then you can renegotiate the remaining £456

How do you get the idea that he does not have to stick with the agreement?

If you don't pay the 6 x £24 they are of course not deducted from the debt. They will just deduct the £24 from whatever amount he tops up.

You cannot eat you cake and keep it.

I was suggesting come April when the debt has been reduce by £544 (if BG insist that the £400 comes off his debt)and he has also paid 6 lots of £24 that come April the £456 debt could be agreed with BG to be spread out like the original £1000 debt reducing their DD amount then.

pochase

[Deleted User] said:

SammiJxx said:

If I am currently paying £225 per month and they give me £66 / £67 voucher, then I will only be paying £159 / £158 per month. 

The debt has been spread over 5 years at £24 per month, with £400 deducted, over 5 years that is only £6.66 less per month.

Are you sure that you understood the answer? A supplier’s first priority will always be the repayment of any debt. This does not mean that it can change the terms of the agreement that it has with you. 

It follows that out of each monthly £66 payment, £24 will be deducted and put towards repayment of your debt. The balance will be used to offset future energy charges. 

If £225 remains unchanged as your monthly payment, then your DD payment will be reduced by £66 to £159.

As far as your energy account is concerned, the supplier is still receiving a total credit of £225 - from you and the Government. Your energy account will be credited with £24 going towards the debt, with £201 going towards your future energy charges. 

He says he is on prepaid, so no direct debit. I just have never heard of a fixed prepaid payment every month.

Back to topic. I doubt that they are allowed to just hold back the £400 in vouchers and put it against the debt. The grant is for help with the current energy cost, not for debt repayment, Of course you will to stick with all agreements he needs to still pay the £24 against the debt, but not the whole £67.

MWT

SammiJxx said:

I don't pay by Direct debit - I have a payment card that I take to a Payzone & pay cash each month.
I presumed I would receive a £66 or £67 voucher as stated but they have told me that the £400 will just get deducted from my debt.

I don't think this is allowed but can't find any advice

I do understand your concern, there is no DD involved here and as far as we know at the moment, that should mean that nothing changes in the way you pay each month and you should get the vouchers so you can reduce your payment by the amount of the voucher.

It is possible that the BG person you spoke to is just assuming it will come off the debt, so just going to have to wait a bit longer to get more clarity on how this will be handled.

pochase

SammiJxx said:

I am already struggling each month with all other rising costs so trying to find over £100 each month for my gas is already worrying me.
I am currently putting about £20 per month on to try and build up my credit before the winter

You are not paying for gas used, but you are still paying the 37p standing charge,

So of the £20 you top up £11 will be used to pay the standing charge and £9 will be used to build up a credit.

SammiJxx

MWT said:

SammiJxx said:

I don't pay by Direct debit - I have a payment card that I take to a Payzone & pay cash each month.
I presumed I would receive a £66 or £67 voucher as stated but they have told me that the £400 will just get deducted from my debt.

I don't think this is allowed but can't find any advice

I do understand your concern, there is no DD involved here and as far as we know at the moment, that should mean that nothing changes in the way you pay each month and you should get the vouchers so you can reduce your payment by the amount of the voucher.

It is possible that the BG person you spoke to is just assuming it will come off the debt, so just going to have to wait a bit longer to get more clarity on how this will be handled.

I am hoping so - I will try to speak to the department that set up my payment plan

Mstty

Regardless of DD or prepayment the amount owed on the debt could be £456 if the OP is forced to use the £400 on debt first and could then rearrange the amount that comes off each month come April👍

pochase

Mstty said:

pochase said:

HowMstty said:

You could look at it this way if they do enforce this going off your debt.

Oct-March you will reduce your debt by £400 plus 6 lots of £24 so you will have reduced your £1000 debt by £544!!

Then you can renegotiate the remaining £456

How do you get the idea that he does not have to stick with the agreement?

If you don't pay the 6 x £24 they are of course not deducted from the debt. They will just deduct the £24 from whatever amount he tops up.

You cannot eat you cake and keep it.

I was suggesting come April when the debt has been reduce by £544 (if BG insist that the £400 comes off his debt)and he has also paid 6 lots of £24 that come April the £456 debt could be agreed with BG to be spread out like the original £1000 debt reducing their DD amount then.

That makes sense. 

So you mean not renegotiate the amount owed, but the payment terms? Either shorter repayment time as mentioned by me or much lower repayment per month.