What to do if you’re struggling to pay your energy bills
You need to keep warm and use energy to power your home, but the soaring cost of gas and electricity is forcing more and more people into fuel poverty. NimbleFins explores some schemes out there to help, both from the Government and charities.
Check you're getting all financial help and benefits you're entitled to
You might qualify for:
- Winter Fuel Payment - Now worth £200 or £300 (depending on your age). Following recent changes, this is no longer universal. To be eligible, you must have been born before 22 September 1959 and receive a means-tested benefit like Pension Credit, Universal Credit, or income-related ESA. Note: There is now a £35,000 gross income limit. If your total taxable income for the 2025/26 tax year exceeds £35,000, HMRC will "claw back" the full payment through your tax code later this year.
- Cold Weather Payment - a £25 payment each time the temperature drops, or is forecast to drop 0C or below for seven consecutive days, between 1 November 2025 to 31 March 2026. This is available for people on Pension Credit, Universal Credit (if not employed), and other income-based benefits. Click here for our information guide explaining how and when you'll get the Cold Weather Payment.
- Warm Home Discount - £150 one-off discount applied directly to your electricity bill. In England and Wales, eligibility has been expanded and the "high-cost-to-heat" threshold was removed in late 2025, meaning most people on means-tested benefits now qualify automatically. The deadline to call the helpline if you haven't received your letter is 27 February 2026.
- Household Support Fund (HSF) - The Government has extended this fund until 31 March 2026. Your local council has a pot of money to help vulnerable residents with "essentials" like energy and water bills. You do not always need to be on benefits to apply.
- Fuel Direct Scheme: If you are in energy debt, you can have a fixed amount (typically £4.65 for the 2025/26 tax year) deducted directly from your benefits to pay off your arrears and cover current usage. This can be set up via the JobCentre Plus or the Pension Service.
If you live in Scotland there is also the:
- Child Winter Heating Assistance - £255.80 payment for winter 2025/26 per disabled person under 19 living in Scotland
You may also be eligible for other benefits which can open the door for the above as well. Check if there are benefits available to you by using one of the independent benefits calculators recommended by the Government.
The British Gas Energy Trust has a helpful guide on the benefits available which you may not realise you're entitled to. From the Bereavement Support Payment to Child Benefit, there are a number of welfare options out there.
Contact your supplier
They have a duty to help you come find a solution. You can negotiate so the payment plan works for you, taking into consideration how much you can afford and how much energy you're going to be using in the future.
Use the Breathing Space scheme
This gives up to 60 days respite from debt chasers, interest, fines and court action.
It is officially called the Debt Respite Scheme and can relieve the pressure and stress of debt by giving you time to get a plan together. Debt charity Step Change has information on how to apply.
Use your benefits to pay the bills
The Government allows third party deductions to benefits to help pay some bills, including rent, service charges, fuel and water bills. This is sometimes called the Fuel Direct scheme. The benefits that can be used are:
- Universal Credit
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Income Support
- Pension Credit
Your Universal Credit can be deducted to pay your gas, electricity and water bills (and more for other bills like fines and rent).
Under the Fuel Direct scheme, fixed amounts can be deducted from your benefits to pay off energy debt. Following the 1.7% rise in benefits for the 2025/26 tax year, this deduction is typically £4.65 per benefit (up from £4.55). If you receive Universal Credit, Pension Credit, or Income Support, contact the DWP or Pension Service to see if this 'third-party deduction' can help you manage arrears more predictably.
Try to reduce your energy use
You’ve undoubtedly already tried to do this, but it’s worth reminding yourself of ways to save energy just in case.
When energy prices are higher, even smaller changes can carry significant weight. Turning your thermostat down by just 1°C can save you roughly 10% on your heating bill, which for a typical home in 2026 is a permanent saving of about £86 a year. Additionally, 'vampire devices'—electronics like TVs, printers, and microwaves left on standby can cost the average UK household around £130 a year. Simply switching these off at the wall can provide an immediate boost to your monthly budget.
Read more of our tips to reduce energy use here.
Apply for a grant
Energy companies offer grants and schemes to help people in difficulty, even if they are not your supplier. Citizens Advice has a list of energy companies that offer grants.
Charis Grants also has a list of options that are open to applications.
The British Gas Energy Trust asks applicants to get financial advice before applying as this will help chances of securing the grant. They have a list of organisations that offer free advice.
Can you make savings by changing the way you pay?
Traditionally, paying by direct debit has been the cheapest way to pay your energy bills.
But as of Q1 2026, Prepayment Meters (PPM) have become the cheapest way to pay for energy. Under the current Ofgem price cap, a typical household on a PPM pays approximately £1,722 per year, compared to £1,758 for Direct Debit. This is because PPM unit rates are now roughly 3% cheaper per kWh than Direct Debit, and standing charges have been equalized to remove the 'prepayment premium.' Standard Credit remains the most expensive method, with typical bills reaching £1,872 per year. If you are struggling, switching to a smart prepayment meter may now offer the lowest possible baseline cost.
Additionally, keep in mind that shopping around for a deal, particularly one on a fixed rate tariff, can help you avoid fluctuations of energy bills without you having any control. NimbleFins offers some information on how to compare the energy market.
Other help
Citizens Advice has a helpline which can talk you through options if you're still in need of assistance.