What to do about utility arrears

Utility arrears simply means you haven’t been able to keep up with payments to your electricity, gas and/or water provider.

Gas and electricity debts are classed as priority debts, so it’s important to pay these off before non-priority debts like credit cards and personal loans.

That’s because non-payment can lead to serious consequences, such as having your energy supply cut off.

A water company can’t turn off the water supply to your home if you owe them money.

If you’re struggling, let your supplier know as soon as you can, and they’ll work with you to find a solution.

Suppliers must treat you fairly, especially if you’re vulnerable or on a low income.

Most suppliers will work with you to agree smaller, affordable payments over time.

Any payment plan you agree will include an amount towards your arrears and an amount towards your current use.

Your supplier must look at what you can afford and how much energy or water you use.

It’s a good idea to create a budget before you speak to your supplier so you can show them how much you can afford to pay.

If you’d like support with this, we’ll be happy to help.

You may be able to pay off your energy debt directly through your benefits.

Under the Water Direct and Fuel Direct schemes, a fixed amount will come straight out of your benefits to cover what you owe.

Many energy companies offer grants to help customers clear arrears.

Find out what grants are available and how to apply.

You may also get help from the government, such as:

• the warm home discount
• winter fuel payments
• cold weather payment

Your water company, meanwhile, may offer a hardship fund to help you if you’re struggling to pay your bills.

You may also be eligible for a discounted tariff if you're on a low income, or a capped bill under the WaterSure scheme.

Ask your supplier what help is available.

Or check with CCW - an organisation that supports water consumers in England and Wales.

If you're vulnerable, it’s worth joining the Priority Services Register (PSR) for additional support.

The PSR is a free service that provides extra support to people who need help with their energy supply.

By joining, you could benefit from extra support during power cuts or help to make your billing more understandable.

You could be eligible if you’re disabled, have a long term medical condition, a mental health condition, communication needs or are pregnant.

Check to see if you can sign up at PSR.