British Gas customers could receive free cash if they're struggling to pay bills

British Gas customers who are struggling with their bills may be eligible for this new scheme (Credits: Getty Images)

British Gas is giving away free cash to customers struggling to keep up with their energy bills by matching what they can afford to pay with an equal credit top-up for six months.

The scheme, dubbed You Pay: We Pay, will run from June to November, with British Gas promising to contact customers who qualify over the next few weeks.

The only catch is that customers must keep paying their bills each month – though only as much as they can afford.

The more they pay, the more free credit British Gas will give them.

For example, a customer paying £100 a month will pay £600 over six months.

British Gas will then give them an extra £600 credit, to help clear outstanding money owed.

Chris O’Shea, boss at British Gas’ parent company Centrica, said the scheme is intended to ‘try to help customers wipe the debt slate clean’.

He commented: ‘Most people want to pay their bills, but it can be very difficult to pay for what you need and clear debts.

‘For many households the cost-of-living crisis is far from over and at the end of each week or month there will be those who have little, if any, money left after paying for life’s essentials.

‘We want to try to help put our customers on a better footing to recover from this period of high inflation.’

The cost-of-living crisis has contributed to the strain on customers (Credit: Getty Images)

Richard Lane from debt advice charity StepChange described the rising cost-of-living as ‘devastating’, saying that it has pushed more and more families into debt.

‘Many households will need support to clear arrears that have built up that will otherwise risk trapping them in debt and financial hardship,’ he said.

‘It’s great to see innovative approaches from companies like British Gas that have the potential to make a real impact for struggling households through this difficult period.’

British Gas has put aside £15million to fund the scheme, adding millions to the £140million the supplier has ring-fenced to support households living in fuel poverty.

Who is eligible?

Customers do not need to contact British Gas to apply – if you’re likely to qualify for the help, the company will contact you directly.

You’ll need to have an assessment with a specialist adviser, who’ll check your personal circumstances before letting you know if you can benefit from the extra credit.

There’s no guarantee, but broadly British Gas has said those likely to get approval to sign up must:

• Be in or facing fuel poverty
• Have obtained or will obtain debt advice
• Have been a British Gas customer for at least six months 
• Pre-agree a payment amount following the assessment
• Be getting existing customer support 

Where else can you get help with energy bills?

While the new scheme is reserved for British Gas customers only, anyone struggling to keep up with energy bills can apply to the British Gas Energy Trust for a free grant of up to £2,000, even if they have a different supplier.

The trust is an independent charity funded by British Gas, offering support to households across the UK that are up to £1,500 behind on their energy bills.

To be eligible, you need to be ‘exceptionally vulnerable’ and not have a household income of over £16,190 excluding households with carers, disability, three or more children.

You must also have received help from a money advice agency.

After assessing your situation, the trust can pay off your energy debt completely and there’s also the option to apply for a smaller energy grant to get you through short-term emergencies.

Most other energy suppliers offer their customers some form of help if they’re struggling.

Scottish Power has a hardship fund offering grants to pay off any arrears on your account, though you’ll need to be claiming certain benefits to qualify.

E.on Next Energy Fund offers grants to help cover gas and electricity bills, and if your cooker, washing machine or fridge freezer breaks, you might be able to get a replacement for free.

Ovo, Shell and Octopus also have a range of schemes to help customers clear energy arrears or pay monthly bills.

If you think you need help, contact your supplier’s customer service and they’ll be able to tell you what your options are.

Where to get free debt advice

If you’re finding it hard to cover your living costs and are worried about debt, there are plenty of charities and independent organisations that will give you free and confidential advice on how you can deal with it.

The government’s moneyhelper.org.uk service has a tool online to help you find a free debt adviser near you.

And you can get free and confidential advice from:

• StepChange Debt Charity (0800 138 1111) 
• PayPlan (0800 280 2816)
• National Debtline (0808 808 4000)
• Citizens Advice (0800 144 8848)
• Debt Advice Foundation (0800 622 61 51)
• Turn2Us (0808 802 2000)

StepChange’s Richard Lane said: ‘During difficult times, a combination of financial support and access to holistic debt advice from charities like StepChange can put people on a pathway to manage their bills and become debt free.’

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