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Daily Mirror
Daily Mirror
Business
Emma Munbodh

Millions of struggling households to get emergency gas and electricity credit this winter

Millions of people who are struggling to pay their gas and electricity bills will qualify for emergency support this winter, Ofgem has confirmed.

Cash-strapped households will qualify for emergency credit on their prepayment meters, while those in debt will be put on "realistic and sustainable" repayment plans.

The industry watchdog said those in financial distress would get some breathing space, but all customers will still need to pay for the energy they use.

It comes after Ofgem cut the price cap on default tariffs and prepayment meters on October 1 - meaning bills, should, in theory, fall for those on the most expensive plans this winter.

However, with working from home set to add an average of £100 to bills, experts have warned many households will lose out on these savings.

"Suppliers have stepped up to the challenge of supporting their customers during the Covid-19 crisis, especially those in vulnerable situations," said Ofgem's director of retail Philippa Pickford.

"Customers who are struggling to pay their bills should contact their supplier as soon as possible. The extra protections we have announced today will help ensure they get some breathing space this winter."

From 15 December, suppliers will be required to offer emergency credit or extra prepayment credit to households in vulnerable circumstances.

This could be because people are temporarily unable to afford to top up their prepayment meters, or are unable to visit their local shop due to having to self-isolate or having a mobility issue.

The regulator also wants to make sure that suppliers have credit management plans in place - including proactively contacting customers and putting them on tailored debt repayment plans.

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An estimated 6million people in the UK have fallen behind on household bills since the start of the pandemic.

Many more are just about breaking even.

"This raft of new protections from Ofgem should help more people who are struggling to stay afloat," said Citizen Advice's chief executive Dame Gillian Guy.

"Energy is an essential service and everyone should be confident they can adequately heat their home and protect their health - especially during a global pandemic.

"We've been pressing for the measures agreed between government and energy suppliers to help people through the coronavirus pandemic to be extended and widened, so we're very pleased to see this announcement from the regulator."

However, she warned that many consumers will still struggle to "pay for the basics", even with help from energy suppliers.

Dame Gillian added: "Government needs to do more to support those who need it most, including making the temporary uplift to Universal Credit and Working Tax Credit permanent."

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