Hardship support: tips for coping with rising energy prices

The RCN Foundation have partnered with debt advice experts PayPlan to provide free advice and support to nurses, midwives and health care support workers experiencing hardship. Learn more about their work with the RCN Foundation.

Here at PayPlan, we know the rise in the energy price cap in April was extremely worrying for many people. Despite a new price cap, rates will still rise this October, and also in January. The financial pressure is not going away. Here are some tips to help you manage the changes.

The overall picture 

The energy price rise is less than had previously been expected, after the government announced it will cap domestic bills at £2,500 to prevent widespread hardship. However, for a typical household, a £2,500 bill is still double what it was last winter.

PayPlan CEO Rachel Duffey said: “We understand the financial hardship rising gas and electricity bills are placing on our customers and the rest of England, Scotland and Wales.

“But it’s crucial to understand that gas and electricity bills are classed as priority bills, which means there can be severe consequences for missing or being late on a payment.

“If a person doesn’t pay a bill, their supplier can collect the debt using a debt collection agency. They can also get a court warrant to enter their homes to fit a pre-payment card meter. If someone is struggling to pay for energy or think they may get into financial difficulty, it’s important that they contact their supplier as soon as possible.

Contact your supplier for help

“I encourage people to seek help if they’re struggling to meet payments, or are at risk of falling into arrears. One of their first points of call should be their supplier, and they should let them know that they’re struggling. They may be able to offer support and inform them about any available grants to pay off a utility bill or negotiate an affordable payment plan.”

OFGEM rules mean suppliers must offer people a payment plan that they can afford, and they can ask for 'emergency credit' if they use a pre-paid meter they can’t afford to top up.

Most suppliers have also signed up to fresh commitments drawn up with OFGEM and the industry body Energy UK to support consumers this winter.

The government has also announced an Energy Bills Support Scheme worth £400 across six payments to help support residents across England, Scotland and Wales this winter. Read PayPlan's Energy Bills Support Scheme advice here.

Build a budget – here's how

So, what can you do now? When money is short, building a budget should always be the first step. There are various templates and products available to help, but here are the key things that should be included:

• Household income

• Regular bills, including essential expenditure like council tax, mortgage or rent, and utilities

• Food and toiletries costs

• Credit card and buy-now-pay-later payments

• Transport costs.

We have a handy guide available on our website to help you work this out. View our downloadable PDF budget guide here.

Ways to reduce energy costs

Unfortunately, there isn’t a ‘quick fix’ to reduce energy bills, but there are a number of things that can be done to help make small savings every month, which will help you manage over the long term.

• Switch things off at the plug

• Turn off lights when leaving the room

• Put the temperature to 30 degrees when washing clothes

• Line-dry laundry, if you have a tumble dryer

• Spend less time in the shower

• Swap your bath for a shower

• Use kitchen appliances in a savvy way

• Make your taps more efficient

• Fill your dishwasher.

Contact PayPlan

If you are finding it difficult to manage your budget, are struggling with debt repayments, or want to talk to a friendly and impartial debt advice expert, please get in touch.

We're here to help, and available via email and on the phone. Visit our RCN Foundation portal to get started.