British Gas Energy announced on 31 March 2022 that it was putting an additional £2 million into its Support Fund, taking the total to £6 million1. The fund provides grants to the supplier's most financially vulnerable customers who are struggling to pay their bills1.
The £6m British Gas Support Fund is described as the biggest in the UK and was set up in response to the increasing cost of living and rising inflation1. Grants are between £250 and £750 towards energy bills, and applications are made through the British Gas Energy Trust1. Any British Gas energy customer with less than £1,000 in savings who is struggling to pay their energy bill is eligible to apply1.
More than 2,500 grants have already been given out, with an average grant of over £5501. Over a third of recipients are on disability benefit, 30 per cent are single parents and a quarter have children under 5 years old1.
Chris O'Shea, Chief Executive of Centrica, said:
"We hear from customers every day who are struggling with rising household costs and we want to do everything we can to support them during this difficult time. The extra funding adds to the financial support and advice we already offer and ensures grants will be available for our customers as we go through the year."
The Trust also delivers advice and support services for all consumers, and last year provided almost £2 million of debt relief, emergency fuel vouchers and grants to replace boilers, alongside several million pounds of additional funding to other organisations offering advice and financial support1. The announcement notes that the company also provides advice on making homes more energy efficient to manage bills1.
Why it matters for households
For a household in energy debt, a grant of £250 to £750 reduces what is owed to the supplier, which is a different kind of help from a discount applied to a bill. The eligibility test reported here is narrow: the applicant must be a British Gas energy customer with less than £1,000 in savings and must be struggling to pay1. Households supplied by other companies are not covered by this fund, though the Trust's wider advice services are described as being for all consumers1.
The reported profile of recipients, with over a third on disability benefit and 30 per cent single parents, indicates where the money has gone so far1. For a home trying to stay independent of debt, clearing arrears through a crisis fund or hardship grant can remove a barrier to switching or to arranging a manageable payment plan, though the announcement does not set out terms for either.
The £2 million increase is a supplier-level response to rising costs, not a change to the price cap or to any government scheme. Households on British Gas tariffs are the only ones who can apply for these grants1.
What happens next
No closing date, application deadline or total number of grants available for the enlarged fund is given in the announcement1. The Trust states that grants will be available for customers "as we go through the year"1. The announcement page carries a note that it has not been updated in a while and that some details may no longer be accurate1.
Sources1 cited
- British Gas Increases Support for Customers Struggling With Bills | British Gas Energy Trust, britishgasenergytrust.org.uk