Don’t Pay UK’s plans have been branded “grossly irresponsible” by the government and charities have warned against rushing to cancel your fixed charge. But Britain is facing its biggest cost of living crisis in decades and Citizens Advice said it supported more people who were unable to top up their pre-paid energy meter in June than in January 2022. Latest cost of living: Ex-PM warns of ‘financial time bomb’ So for many, the inability to pay their energy bills is more than just a strike, but a reality of the biggest pressure on household spending in 60 years. What if you don’t – or can’t – pay your energy bills? If you miss a payment, the supplier will first send you a reminder. If they still don’t hear from you, they may try to visit you at home to work out the best way to pay – but some, like SSE, will add the cost of this visit to your bill. If you don’t agree to a repayment plan, they may try to force you to install a prepayment meter. This means you’ll need to pay for your energy upfront, as well as a weekly amount to cover any debt. If you haven’t paid your bill after 28 days, you may be threatened with having your supply stopped. Although this is rare – with Don’t Pay UK claiming that just eight people were logged out in 2018 – it could happen. Your supplier must first give you the opportunity to pay off your debt through a plan first. If you can’t come to an agreement with them, they can get a court order to enter your home to disconnect you. Those with smart meters could be disconnected remotely, but the energy company must first visit your home to assess your personal situation. Paying by direct debit is usually the cheapest way to pay for energy, so you could face higher bills if you cancel. If you are of state pension age, your supplier cannot disconnect you between 1 October and 31 March if you either live alone or with other people who are of state pension age or are children under 18. Use Chrome browser for more accessible video player 2:40 Energy bills could reach £4k How it affects your credit score Energy bills aren’t a loan, so missing payments aren’t guaranteed to affect your credit score – but they still can, and that could make it harder to borrow money in the future (for example, applying for a mortgage). Some suppliers report missed payments to credit bureaus, so it’s possible these will show up on your credit report. Will it affect my rent or mortgage? If you rent, you’re unlikely to be evicted if you don’t pay your energy bills – unless they’re included in your rent. If they are included and you stop paying, your landlord could evict you for being in arrears with rent. Your mortgage and monthly repayments are agreed directly with your bank or builder – so if you stop paying your energy bills, it will have no effect on your mortgage. But not paying your bills could make it harder for you to get a mortgage or remortgage, so it’s not advisable in the long run. Use Chrome browser for more accessible video player 1:33 People will be hungry and cold What help is available? Earlier this year, the government announced a new energy bill support package, meaning almost all households will receive £400 from October. Some may receive up to £1,000 to help pay for rush costs. Citizens Advice offers help to anyone who may be struggling to pay their energy bills. You may be eligible for help from your local council. You can find out more information online.
