At the British Gas Energy Trust, we are committed to aligning our efforts, with national UK Government and Ofgem strategies, to address the multifaceted nature of fuel poverty, and to tackling both immediate financial burdens on individuals and also the structural challenges within the energy market. Our ongoing work focuses on:

  1. Direct Financial Support: Through grants and energy debt relief, we provide immediate assistance to those in need, complementing the proposed Ofgem initiatives.
  2. Energy Efficiency Education: We empower households to reduce consumption and lower bills by promoting practical energy-saving measures.
  3. Holistic Money, Debt & Energy Advice: We fund practical personalised support for households in or at risk of fuel poverty, delivered through a network of not-for profit charities and social enterprises.
  4. Advocacy for Vulnerable Consumers: Our close engagement with policymakers ensures that the voices of those affected by fuel poverty are represented and prioritised in decision-making.

Introduction

The Trust believes that while a one-off debt relief scheme has limited impact, a strategic, long-term approach is needed to tackle customer debt effectively. Nonetheless, the Trust supports a targeted one-off scheme if it forms part of a broader solution for households unable to pay past energy debts but able to manage and contribute to paying future costs.

The Trust provides direct energy debt relief through two funds:

  • Individuals & Families (I&F) Fund
  • Energy Support Fund (ESF)

The Trust is drawing on its experience providing energy debt relief grants to make the following key points and in response to the questions in the DRS Working Paper consultation.

 Key Points

Scheme Design: Simplicity, Eligibility, and Engagement

  • Binary Eligibility Requirement: A simple, binary eligibility process is essential to reduce ambiguity and the administrative burden.
  • Resource Constraints: Many energy suppliers lack capacity for intensive engagement or large-scale support, so within the DRS they will be unable to match the engagement and support offered by the Trust’s debt relief grants and 41 Funded projects.
  • Customer Engagement Challenges: For energy suppliers, engaging customers remains difficult due to widespread disengagement, rising debt, and reaching and engaging vulnerable groups within the available resources and timeframe of the DRS.

Long-Term Debt Strategy Versus One-Off Schemes

  • One-Off Scheme Limitations: A one-off debt relief scheme provides only a limited effect; a continued and structured approach is considered necessary to address underlying causes of customer debt and support long-term improvement.
  • Alignment with Debt Strategy: Integrating the DRS with standards and codes of conduct for energy suppliers in assisting vulnerable customers is important, as a thorough debt strategy serves as a direction for preventing the accumulation of future debt.
  • Means Testing and Data Use: Relying solely on means-tested benefits to determine eligibility may be insufficient. A more comprehensive evaluation could include:
    • Total household income
    • Vulnerability factors (such as disability or caring responsibilities)
    • Amount and duration of energy debt
    • Capacity to meet ongoing energy costs after assistance
  • The Price Cap: It is not clear, within the financial mechanisms associated with the DRS, if the Ofgem’s future adjustments to the price cap will be coordinated with and have an effect on the introduction of the DRS and a long-term debt strategy.

 Why Debt Relief Should Be Combined with Compulsory Money & Energy Advice

Trust data shows that combining debt relief, money advice, and energy guidance offers the most effective support for vulnerable customers, addressing their overall needs and has a lasting impact.

As a requirement of the Trust’s debt relief grants, recipients must access and receive money and energy advice, as one-off assistance alone does not provide lasting solutions for individuals and households.

An analysis on people who received a grant and also money advice showed a high proportion of people staying out of debt after 3 and 6 months

Debt Write Off (Winter 2021-2022) – No Money Advice

  • Grant recipients not in debt 3 months later – 61%
  • Grant recipients not in debt 6 months later – 53%

Debt Write-off Grants July 20222 – April 2023) – With Money Advice

  • Grant recipients not in debt 3 months later – 81%
  • Grant recipients not in debt 6 months later – 84%

This approach was confirmed in an analysis of the Trust’s impact by Oxford Economics (see Additional Information for link to the report) published in May 2024 concluded that:

  • A Holistic Support Approach: The Trust’s combination of practical help (such as debt grants and fuel vouchers) with holistic, person-centred support has significantly improved the lives of beneficiaries. This approach not only addresses immediate financial needs but also enhances overall wellbeing and stability. ​

These figures demonstrate that the Trust’s approach helps individuals and households by providing advice and support in areas such as income maximisation, money and debt management, health referrals, and energy efficiency to reduce future energy use and bills.

Response to Key Consultation Questions

Objectives of the DRS

  • The Trust is agreement with the objectives of the DRS.
  • Challenges in Customer Engagement: For Objective 2, enhancing engagement and trust with energy suppliers is vital. Engaging vulnerable customers is especially difficult, as many do not respond to communications due to mental health issues or distrust of their energy supplier. Automated processes are needed for those most at risk. How payment plans for disengaged clients could be enforced also remains a concern.
  • Key Barriers to Engagement & Support include
    • Trust in Support: The widespread distrust of energy suppliers among many U.K. customers may led to scepticism, even toward legitimate offers of support. From the Trust’s experience, this can make it very difficult to engage people and affects uptake rates, even with genuine debt relief ‘grants’. Communication about the DRS will need to acknowledge and work to overcome this scepticism as customers may not ‘trust’ it, suspect it is a scam or has hidden conditions.
    • Seeking Support: Trust roundtables in 2024 found that many people with mental health issues or caring responsibilities hesitate to seek support due to shame or doubts about receiving help. Customers are also reluctant to contact energy companies because reaching someone helpful is difficult, and they often feel dismissed or not taken seriously.
    • Barriers in communication: Communication from energy suppliers to customers is often not adapted for the recipient, resulting in limited accessibility. Barriers may be encountered by disabled customers, people with visual impairments, those with low literacy, individuals who are digitally excluded, and non-English speakers or those for whom English is not the first language. Clear, consistent, and accessible messaging can better support effective interaction between energy suppliers and their customers.

Do you agree with the conditions proposed for both engaged and currently disengaged customers

  • The Trust agrees with the proposed conditions for both engaged and currently dis-engaged customers.
  • Eligibility and Conditions: Compulsory participation in money advice services is essential to address energy debt and broader financial concerns. Applicants must provide meter readings when applying for grants, as missing readings often prevent access to debt relief. Many customers, especially those self-disconnected and facing standing charge debt, do not submit a reading, which makes them ineligible for grant payments.
  • Repayment Options: We suggest a ‘carrot and stick‘ strategy: the supplier pays most of the debt and the customer contributes 5%, verified by a financial statement.
  • The 5% Contribution: Although, overall, we support the 5% contribution proposal as it may encourage customer engagement and responsibility, the Trust is concerned it could prevent vulnerable households, who genuinely cannot afford this amount, from accessing support. Further consideration is needed on whether the payment should be one-off or spread over time to avoid excluding those most in need from accessing/taking up support. Additionally, how does this affect clients’ repayments for debt incurred after 2024 and what are the reasons for adhering to the repayment plan if current contributions exceed 5%?

Should available DRS support be capped as at statutory consultation date?

  • Yes, the Trust is agreement it should be capped at the consultation date.

Are there any alternative engagement pathways that customers could choose to demonstrate a commitment to resolving debt sustainably?

  • Effective debt relief schemes (as evidenced by the Trust’s grants) require more than debt cancellation; they should:
    • Combine energy debt relief with support such as financial advice, income improvement, and energy efficiency guidance
    • Promote responsible financial habits to avoid repeated debt issues

The Trust uses multiple pathways to offer support and guidance that help individuals access and engage with available resources.

  • Referrals to and support from our funded organisations
  • Online Tools (Better Off Calculator)
  • BGET Assist (Money Advice Line)
  • Outreach Programme

 For example, the Trust’s Outreach programme targets digitally excluded and underserved groups. For 2025-26, it expands to a year-long initiative, launching on 16 September with the Zinthiya Trust in Leicester. Through 20 local partners, it will deliver advice and support at 120 events, with locations selected based on deprivation index and British Gas debt data.

Are there any improvements that could be made to existing processes or rules to make the scheme more effective?

  • Debt Relief Should Be Combined with Compulsory Money & Energy Advice: The Trust recommends that all recipients of the DRS receive guidance on financial matters to support them in managing energy-related and other debts, as addressing one area of debt can positively impact the management of others. It is proposed that compulsory participation in money advice programs, along with a customer commitment to initiatives such as British Gas’s You Pay, We Pay, become an integral part of the process for accessing the Debt Relief Scheme (DRS).
  • Integration/Alignment with Existing Energy Supplier & Charity Debt Relief Funds/Schemes: As an existing debt relief fund provider, the Trust is concerned that the DRS may not fully consider or align with current supplier and charity support schemes, potentially causing unintended negative effects. Further examination is needed to ensure the DRS enhances, rather than undermines, existing customer debt relief support.

Conclusion

Debt relief should be integrated into a broader, long-term strategy to tackle fuel poverty. Key insights from the Trust show that:

  • Fuel poverty is linked to wider socio-economic issues
  • Holistic support is more effective than one-off debt clearance
  • Coordinated policy is necessary for sustainable affordability

The DRS alone cannot solve the debt or affordability crisis, but it can help and will be much more effective if it combined with financial advice, income improvement, and energy efficiency guidance.

Overall, Ofgem must ensure its measures are part of a cohesive strategy that supports the UK’s most vulnerable energy customers and prevents the accumulation of future debt.