For those worried about paying utility bills or repaying credit cards, loans or mortgages due to the impact of COVID-19, the below guidance sets out the steps you can take to get the support you need.
In the first instance, people struggling to pay essential bills are encouraged to:
- contact your provider: if you think you might have a problem paying a bill, contact your provider as early as possible to explain, and receive help with paying your bills
- ask for help if you need it: if you are struggling with your bills or credit commitments, free advice is available. coronavirus has affected the entire nation and many of us need support now, even if we never have before
- explore payment options: if you are struggling with bills, it is better to agree a payment plan with your provider and keep making regular instalments, rather than cancelling direct debits and letting debt build
Business Minister Paul Scully said:
We know it is a particularly difficult time for households across the UK, with many struggling to keep up with bills, loan payments and mortgages due to the impact of COVID-19.
The government, regulators and industry acted quickly in March to assist as many people as possible, with measures including mortgage holidays, and support for energy, water and telecoms customers.
I would urge those who are struggling to speak with their providers, seek out free advice and explore the payment options open to them.
In response to the impact of coronavirus, the government agreed a raft of measures with providers across a range of sectors to ensure struggling consumers are treated fairly. These agreements cover the following sectors.
1. Energy
The government has agreed a set of principles with domestic energy suppliers to support consumers impacted by coronavirus.
Energy companies will seek to identify and prioritise customers who may need additional support, taking into account Priority Service Register customers, prepayment meter customers, and customers who are vulnerable to having a cold home.
Based on individual circumstances, firms may offer support such as:
- reassessing, reducing or pausing debt repayment and bill payments for domestic customers in financial distress
- referring customers who are struggling to pay to third party debt advisers such as StepChange and Citizens Advice
- suspending credit meter disconnections
Firms will also support prepayment meter customers directly or indirectly impacted by coronavirus to stay on supply. Based on individual circumstances, support could include:
- extending discretionary/ friendly credit or sending out a pre-loaded top up card
- enabling customers to nominate a trusted third party to be able to pick up discretionary credit sent to a shop on their behalf
- switching smart prepayment meters into credit mode or extending non-disconnection periods (consumers will be made aware any credit will need to be paid back)
- contacting prepayment customers with advice on what to do in the event of self-isolation
2. Water
The government and Ofwat, the economic regulator of the water sector in England and Wales, remain in close
