British Gas offers millions of customers a winter direct debit freeze

27 August 2021

Energy crisis

Media Relations

British Gas has responded to the latest Ofgem Price Cap increase by freezing direct debit payments at current levels this winter and says;

"We understand that the Price Cap increase comes at a very expensive time of year for some of our customers. The furlough scheme which has helped millions of people is coming to an end, parents are getting children ready for a new school term, and Christmas is on the horizon. Freezing direct debit payments until after winter will keep an extra £50 in customers pockets. We want to give our direct debit customers the option to create a bit of extra financial breathing space if they need it.”

British Gas will assess the market outlook in February 2022 before making a final decision on changing direct debit payments to reflect the increase to the Standard Variable Tariff (which is subject to the Price Cap). Customers who would rather manage the price increase immediately can amend their direct debit via the British Gas app or by contacting us.

Prices for customers on standard variable tariffs, which is a regulated tariff with a cap that is set by Ofgem, will be increasing from 1st October. However, the price increase will not apply to more than 2 million British Gas customers who are already on a fixed deal.

NOTES

The change to Standard Variable Tariffs (SVT) prices comes into effect from October 1st. Increases to direct debit payments for customers whose prices are affected by the price cap increase will be paused until after winter.
The survey of 2,002 UK residents, who pay their energy bill by Direct Debit, was conducted on Friday 6th of August 2021. Find Out Now adjusted the results to get a nationally representative sub-sample of 2,000 within +/- 1% of ONS quotas for Age, Gender, Region and Socio-economic group. Find Out Now are Market Research Society Company Partners and a member of the British Polling Council.
Providing support to our most vulnerable customers remains a priority. The transition to a low carbon economy must be fair and it’s critical that we decarbonise our homes in a way that doesn’t disproportionately hit those that can least afford it. British Gas is open to working with Government and all NGO’s on how we support a just transition to net zero.
Last year British Gas helped over 300,000 customers manage their debt, giving them more time to pay through payment plans. In addition, over the last year the British Gas Energy Trust provided grants worth £1.4 million to individuals with energy debt, including non–British Gas customers.

The British Gas Energy Trust (BGET), which incorporates the Scottish Gas Energy Trust, is an independent Charitable Trust established in 2004 and is funded solely by British Gas. Since the launch of the Trust, over £78 million has been invested in helping over 170,000 people manage their energy