You are not alone, and you have more rights than you think
Energy debt is one of the most common forms of household debt in the UK. According to DESNZ data from 2025, around 13% of UK households are in fuel poverty. That is roughly 3.5 million homes where people are spending more than they can afford on keeping the lights on and the heating running.
Yet most people in this position don't know their rights. They don't know about the automatic payments, the grants that never have to be repaid, the legal obligations that every energy supplier must meet. They worry in silence and pay in full, even when they don't have to.
This article covers everything. Read it once. Bookmark it. Share it with anyone who needs it.
A quick note on the price cap: from July 2026, Ofgem's price cap is set at 26.11p per kWh for electricity, with a standing charge of 61p per day. That is the legal ceiling for standard variable tariffs. If you are paying more than this, contact your supplier immediately.
Warm Home Discount 2026: £150 off your bill
The Warm Home Discount is a government-mandated scheme that requires energy suppliers with more than 150,000 customers to provide a £150 rebate applied directly to eligible households' electricity bills. The money goes straight to your account. You do not receive a cheque.
There are two routes to receiving it.
The first is the core group. If you receive the Guarantee Credit element of Pension Credit, the government automatically matches your records against supplier data. You do not need to apply. Your supplier contacts you and the £150 appears on your bill.
The second is the broader group. This covers households receiving certain legacy benefits and meeting a low-income threshold. It includes people on Universal Credit, income-related Employment and Support Allowance, Income Support, income-based Jobseeker's Allowance, or Housing Benefit, where the household income also falls below a given level. For the broader group, you must apply through your supplier's own portal or by calling them directly.
The application window typically opens in October and closes in November or December each year. Do not miss it. If you apply late, you lose the credit for that year.
Not all suppliers participate. If your supplier is not part of the scheme, consider switching. Many suppliers will also apply the discount to your gas bill if your electricity supplier is the same company.
Cold Weather Payment and Winter Fuel Payment
The Cold Weather Payment is worth £25 for every seven consecutive days where the average temperature in your postcode area is at or below 0 degrees Celsius. It is paid automatically to people receiving Universal Credit, Pension Credit, Income Support, income-related ESA, income-based JSA, or Support for Mortgage Interest. You do not need to apply. Check if a payment is due at gov.uk/cold-weather-payment.
The Winter Fuel Payment changed significantly in 2025. It is no longer a universal benefit for all over-66s. It is now means-tested. Only households receiving Pension Credit are eligible. If you are over 66 and not receiving Pension Credit, it is worth checking whether you qualify. Around 800,000 pensioners are estimated to be entitled to Pension Credit but not currently claiming it. Apply at gov.uk/pension-credit.
Priority Services Register: what it is and who qualifies
The Priority Services Register (PSR) is a free service run by all energy suppliers and network operators. It costs nothing to join, and it gives you a meaningful set of protections and support services.
Benefits include:
- Advance notice of planned power cuts, with extra lead time to prepare
- Priority reconnection when there is a power cut
- Password protection against bogus callers claiming to be from your supplier
- A nominee who can manage your account or receive communications on your behalf
- Bills in large print, Braille, or audio format
- Annual gas safety check (for some qualifying households)
- Extra time to pay before your supply is disconnected
You qualify if you are over 60, have a disability or chronic illness, have a mental health condition, have a child under five in your household, use medical equipment dependent on electricity, or are deaf or hearing impaired. The criteria are broad. If in doubt, register anyway. You can register through your supplier's website or by calling their customer services number.
Payment plans: what suppliers are legally required to offer
If you are in debt to your energy supplier, they cannot simply demand the full amount immediately or threaten disconnection without following a process. The rules are clear.
Suppliers must offer you a payment plan based on what you can actually afford. They must take your income and essential outgoings into account. They cannot charge you a higher unit rate than other customers on the same tariff just because you are in debt. They cannot disconnect you for debt in winter (between October and April) if you are a vulnerable customer.
To negotiate a payment plan: call your supplier's dedicated debt team (not the general customer services line), have a rough idea of your monthly income and outgoings ready, and ask explicitly for a payment plan. Get the arrangement in writing, either by email or in your online account.
If your supplier refuses to engage with a reasonable payment request, you can escalate to the Energy Ombudsman (energyombudsman.org). This is free to use and suppliers are legally bound by their decisions. You must have already complained to your supplier and received a deadlock letter, or waited eight weeks without resolution, before escalating.
Energy supplier hardship funds: the ones they don't advertise
Most major energy suppliers operate hardship funds that can clear debt entirely. They are rarely promoted and many customers who would qualify never hear about them.
British Gas Energy Trust is the largest. It is open to British Gas customers and non-customers alike and can provide grants of up to £1,500 to clear energy debt. It is a grant, not a loan. You do not repay it. Apply at britishgasenergytrust.org.uk.
EDF Energy Fund is available to EDF customers in financial difficulty. Grants cover arrears on electricity and gas bills. Applications are assessed individually. Apply through EDF's customer services or through Citizens Advice.
Octopus Energy has a dedicated hardship fund for customers experiencing financial difficulty. Contact their support team directly and ask about it. Octopus is also one of the more flexible suppliers when it comes to arranging payment plans.
You can apply to these funds directly or through a debt adviser at Citizens Advice. A debt adviser will often be able to identify multiple sources of support simultaneously and will help you with the paperwork.
Free insulation grants: ECO4 and the Great British Insulation Scheme
Reducing what your home uses is the most permanent solution to high energy bills. Two government schemes fund free or heavily subsidised insulation for lower-income households.
ECO4 (Energy Company Obligation 4) funds loft insulation, cavity wall insulation, solid wall insulation, and other measures for households in energy efficiency ratings D, E, F, or G, and where at least one occupant receives a qualifying benefit. Funding is provided through energy suppliers. Check eligibility and apply at simpleenergyadvice.org.uk.
Great British Insulation Scheme is broader. It targets households in the lower half of energy efficiency ratings (EPC D and below) without requiring benefits eligibility for all applicants. The most significant savings come from roof and wall insulation, which can reduce heating costs by 20 to 40 percent.
Both schemes involve a survey of your home, then installation by approved contractors at no cost to you. The work is paid for by the scheme. Start with simpleenergyadvice.org.uk or call 0800 444 202.
Free advice services: who to call and when
You do not have to navigate this alone. These services are free, confidential, and staffed by trained advisers who deal with energy debt every day.
- Citizens Advice consumer helpline: 0808 223 1133. For billing disputes, supplier problems, debt negotiations, and knowing your rights.
- National Energy Action: 0800 304 7159. Specialist fuel poverty charity. Helps with grant applications, tariff comparisons, and emergency support.
- StepChange Debt Charity: 0800 138 1111. If energy debt is part of a wider debt problem, StepChange provides full debt management advice including options like debt management plans and individual voluntary arrangements.
- Your local council's fuel poverty team: Most local authorities have a team or officer dealing with fuel poverty. They can often access local grants and emergency funds that national charities cannot. Search your council's website for "fuel poverty" or "energy advice".
All of these services are free to use. None will judge you. All are used by people in every income bracket and every kind of circumstance. Calling costs nothing. Not calling can cost thousands.
Octopus Agile as a long-term solution to high bills
Most of this article covers emergency and crisis support. But there is a long-term route to lower bills that does not require debt, grants, or special eligibility: switching to a time-of-use tariff.
On a standard variable tariff at the July 2026 price cap, you pay 26.11p per kWh at all times. On Octopus Agile, the overnight rate is typically between 3p and 10p per kWh. If you have a smart meter and any flexibility over when you run large appliances, washing machine, dishwasher, tumble dryer, EV charger, immersion heater, Agile can cut your electricity bill significantly.
Octopus's own data shows an average saving of £440 per year for Agile customers in 2023. That figure has grown as the price gap between peak and overnight rates has widened.
You need a smart meter to switch to Agile. If you don't have one, your supplier must install one for free on request. See our guide to getting a smart meter installed and our complete guide to Octopus Agile.
Agile is not a replacement for crisis support. But it is the most effective structural change most UK households can make to reduce their bills over the long term, without buying equipment or changing their lifestyle significantly.
Check tonight's Agile prices in your region →