Not everyone has a buffer, right? What happens if you can't pay energy bill?

[thatchersmotorbike]

As someone who has always lived paycheque to paycheque, and even now we have the tiniest buffer at the end of every month. Bills paid, food budget, invoices paid etc. We're left with a small amount and on the last day before payday we do have literally nothing in the bank.

We can't be the only ones left with nothing at the end of the month can we?

And even if you have an extra £300 a month what happens when that gets requested in your energy DD? Am I living in a fantasy world or are there going to be people absolutely fucked by this?

Can I ask for a vote?

AIBU - we have enough savings to see us through a few years of crazy energy price hikes
AINBU - we are left with nothing at the end of the month, or very little, and the price hikes will cripple us if it goes on.

If you have a mortgage but get into thousands of energy debt what do you do?
If private rending what do you do?
If you own outright what?

Is anyone planning to let the debt rack up?

I believe some people are cancelling their DD and attempting to pay off some of the actual bill when it arrives with what they can afford
. I work with people in energy debt and some of them have found the British Gas Energy Trust to be helpful with advice and grants (you don't have to be a BG customer).

Lots of people will be living in cold, dark houses.

Lots of information and advice in this group about this very situation-

www.facebook.com/groups/966754150512356/?ref=sharewww.facebook.com/groups/966754150512356/?ref=share&exp=9594

You are certainly not alone. 💐

We have savings and money spare each month so we could cover increases to our mortgage and bills. If we couldn't, I would go FT at work and get a second job and my husband would also get a second job.

Our kids are older so this would be doable for us. If your kids are yyounger or if someone is a single parent, a second job wouldn't be doable imo.

We have savings, money left at the end of the month, I could take on more work. The cost of living increase is irritating but not concerning to us. We are fortunate and most people I know are in the same situation, but I know there are lots of people who aren't so lucky.

We’re very lucky to have savings and spare income. Depending on where prices go it might mean us having to cut back in other areas but for now we are ok.

Thank you. Is that only for people on benefits?
I am in energy debt but have been for years. We pay our bill but are not paying off the debt as I am paying off more urgent debt and the energy companies don't chase as much as commercial debts do.

Not possible. Have you ever been in that situation? So ages back, before I sorted myself out, I was three days no gas with my baby, and it was horrendous. I couldn't have coped with anymore days, and I just don't think living in a cold dark house is even possible for one day.

So what do you reckon these people will actually do in practise?

I think some will turn to crime, some suicide, and some just starve to death etc.

Have you been on Martin Lewis' money saving experts website? I would really recommend him if you are in debt elsewhere too. The forums on there have great info too.

Thanks. Yes, I'm managing my debt and paying things off but like I said energy debt is not high up on my list. I despise these companies, they charged both my parents thousands extra and they will never get it back because of bureaucracy and my thousands of debt I am never going to break my back or spend what I earn to pay off because they abuse people in this way all the time and I consider that debt already paid by what they did to my dad.

If you can't pay and on a payment meter you don't have energy, if you pay by bill then might be able to negotiate with the energy companies to pay what's affordable and have a debt on the account until energy bills come back down. Councils, food banks and/or housing charities sometimes can offer small one off payments, social services may be able to help families with children or where there is a vulnerable adult in the household. People with specific illnesses and disabilities may be able to get money through grants or charities. Other people will eat from food bank or eat less to keep the lights and heating on, others will turn the heating off and use minimal electricity in order to keep eating. There was a post on here about things people can't pay for, so I imagine lots of people will be cutting costs with things like not getting new glasses, not seeing the dentist, skipping prescriptions, and there will be a massive cost to this in years to come.

I'm more wondering and worried about people in the situation like I was. I had a young baby, was a mess, and had no gas. It will kill people.

Also people who have worked hard to own a home or be in a mortgage and now will have to go into huge debt and it feels like all that hard work and planning was pointless for them?

I catastrophise a lot but I envisage so many horrific events because of this, don't others?

We’ll be fine. I have taken on some overtime at work; overtime isn’t normally available but there is some on offer until Christmas so I’m taking it whilst it’s there. But I’ve got one eye on needing to get finances in order for retirement which I hope won’t be too far away now.

I wouldn’t be surprised if we need to help our 3 dc out, they have such high costs, and we are from the lucky generation of no uni fees etc. I’ll gladly pay some of their bills if needed.

We previously had a buffer, but with our mortgage going up £700, increases in energy cost and food, cost of living, childcare costs etc we don’t have that much of a buffer! I don’t think we are unusual either. Feel very worried.

While I understand what you are saying and have some sympathy with it, I would advise you not to go down this route if you have children.

I would be worried they would cut you off. I don't think that the powers that be would have any sympathy for you if you say "they overcharged my parents, lets call it even".

Yes mortgages going up too.
Could this lead to you losing your home? Or does that not happen with energy debt?

Eventually the energy company will force a pay as you go meter on you. They'll then set it to take £10 a week to pay your debt. If you can't afford to top up, you have no energy.

If you have a smart meter, they will switch that remotely to pay as you go.

We dont have a lot of spare money, but are risk averse and never played "hop to the cheapest" energy wise, that strategy has, for once, paid off.

We are on a long fix til the end of next year at below cap rate. There are many of us in this position where we have kicked the can further down the road, so will not be feeling any pinch on energy costs this year or next.

So please don't think everyone will be affected. We have sent our £400 "help" to the local food bank as our bills will remain as usual.

What will happen at some point OP, is they will out a pre payment meter in. So you'll have a choice of whether to pay or not. Energy isn't something you can get rebellious about tbh. They can force one on you if they want.

How did you rack up thousands of pounds of energy debt before this crisis? Did you just not pay your bill for a year or two? Perhaps focus on sorting yourself out rather than worrying about other people. You can't just decide you're not going to pay your bills because the same company (if it even is the same company) treated your dad poorly.

Your dad could get his money back if he is in credit so what do you mean when you say they took thousands from him? That he just wasn't on the cheapest tariff? Because there is an energy ombudsman who can intervene if your dad has a genuine valid complaint.

I can't answer your poll.
Currently, we will be ok. BUT I know we are very fortunate, and there are lots of people who will not be able to heat their hones. So, YANBU to think people will have to make some very tough decisions that may have devastating consequences, but YABU to think that some households will be ok.

If you get into enough debt on your gas/electric they will move you onto prepayment meters. If you can't afford to top up you will be in a cold, dark, house. It's classed as self disconnection, as you are doing it to your self rather than the energy companies disconnecting you.........

I'm a single mum. Energy bills are a worry but home is still warmer than when I was a kid in the 70s.

I've reinsulated the loft myself, rather than getting someone in. Easy. Not expensive. And I taught myself to make/alter thermal curtains and searched charity shops for materials. There is a lot you can yourself at little cost.

A genuine question, not being snarky - are you both working FT? If not, can you up your hours to bring a bit more money in?

I can't really answer the poll because we're kind of in the middle of your options.

We don't have much in accessible savings so we're not sitting back comfortably with a bit pot of available money to draw from...but we won't be totally unable to pay either. We do have a decent amount in savings but they're locked into a share scheme and we would literally have to be destitute before I'd risk withdrawing that money because we would lose thousands.

What it will probably mean though is many many hours of overtime for my DH - who's a cab driver - many night shifts for him whilst I work FT and pick up absolutely everything else. Just to stay on top of it all. Much less family time, poorer quality of living in general.

It's kind of depressing that in today's climate I feel 'lucky' to be in that position iyswim.

Yes but you can't force people to pay what they don't have, so if you're on a meter and can't afford to pay you just don't pay. People on meters are not able to pay, they are in precarious positions. I know, I've been there.