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British Gas makes £12 million donation to Energy Support Fund

British Gas has donated £12 million to its Energy Support Fund, double its previous contribution and more than a tenth of first half pre-tax profits, as suppliers widen help with bills.

A newspaper on a kitchen table beside a model of energy suppliers

British Gas Energy has made an immediate £12 million donation to the British Gas Energy Support Fund, which provides grants to customers. The donation is double the company's previous contribution and amounts to more than 10 percent of its first half pre-tax profits, according to an Energy UK briefing published on 8 December 20221.

The briefing sets out support offered by major retail suppliers. It states that suppliers in the UK provide discretionary support of around £54 million on top of the more than £1 billion in mandatory schemes they deliver every year, including funding for the Energy Company Obligation and the Warm Home Discount1.

"An immediate £12 million donation will boost the fund, this is double the previous contribution and more than 10 percent of first half pre-tax profits"
Energy UK briefing,1

The briefing also records that Centrica, British Gas's parent company, has committed British Gas Energy to donate 10 percent of all profits to the fund for the duration of the energy crisis. It says the company froze direct debit payments through the winter, keeping an extra £50 in customer pockets, and doubled emergency credit for prepayment meter customers after April's price rise, allowing them to continue using energy until £10 over their prepayment, up from £51.

On the fund itself, the briefing states that eligible customers are offered grants of between £250 and £750, assessed and awarded by the British Gas Energy Trust, an independent charity. Any British Gas or Scottish Gas customer with less than £1,000 in savings is eligible to apply. It reports that over 2,450 grants have been given out at an average of £524, that over a third of recipients are on disability benefit, 31 per cent are single parents and over a quarter have children under five1.

The briefing also describes support from other suppliers. It states that Octopus created a £5 million Octo Assist hardship fund, which has helped over 50,000 customers, was increased to £7 million and is now being doubled to £15 million. It records that OVO has announced a new £50 million Customer Support Package, and that EDF Energy doubled its financial support to £10.4 million in 20221.

Why it matters for households

The fund is a grant scheme rather than a change to British Gas tariffs, so it does not alter what a household pays per unit. For a home already in debt to its supplier, a grant of between £250 and £750 can clear arrears that would otherwise be recovered through a repayment plan added to a meter or direct debit. The briefing's figures on who has received grants so far indicate the scheme is reaching households on disability benefit and single parent families in particular1.

The wider context is the balance between voluntary support and the mandatory schemes funded through bills. Energy UK puts discretionary support at around £54 million against more than £1 billion in mandatory schemes each year1. For a household weighing up what a supplier's support is worth, that ratio is the practical measure: the profits and margins behind a donation set its scale, while the mandatory schemes remain the larger channel. How far supplier support changes a home's energy independence depends on whether it reduces consumption or only arrears; the briefing describes grants and payment holidays, not measures that cut a home's underlying use.

What happens next

The briefing states that British Gas Energy will donate 10 percent of all profits to the fund for the duration of the energy crisis, which sets the donation as a continuing commitment rather than a one-off1. No closing date for the fund or for applications is given in the briefing. The briefing does not report the total value the fund will reach, or how the £12 million will be allocated over time.

Sources1 cited
  1. Energy UK briefing: Suppliers' support for customers as energy bills rise - Energy UK, energy-uk.org.uk