Rising energy costs can lead to a worrying accumulation of debt, especially for older adults on a limited income. Meanwhile, scammers often see confusion around bills as an opportunity to exploit households. As a carent, you want to ensure your parent stays warm and debt-free, but you also need to protect them from unscrupulous schemes. Below is your guide to preventing energy debt from spiralling out of control and identifying potential scams before they do harm.
1. Recognising Energy Debt Triggers
Energy debt can build gradually or hit suddenly. A harsh winter might force higher thermostat settings, while an inaccurate estimated bill can drive up the direct debit. For an older person, any sudden spike can feel overwhelming, sometimes leading them to ignore final notices due to anxiety. By regularly checking usage, direct debit levels, and whether the household is on the best available tariff, you can help tackle problems early.
2. Setting Up Repayment Plans
If a debt has already accrued, the first step is to contact the energy supplier. Most suppliers in the UK must follow Ofgem guidelines, which require them to set up realistic repayment arrangements. Options might include:
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Spreading the Cost: You pay back the owed amount over several months or even years, depending on the size of the debt.
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Prepayment Meters: Some households switch to prepayment, paying a bit extra each time they top up to clear the debt gradually. This ensures no further debt accrues, though it can be costlier.
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Grant Applications: Many energy companies have hardship funds or charitable trusts specifically to help households in debt. Encourage your parent to apply if they meet the criteria.
Whatever the chosen method, ensure the monthly repayment is genuinely affordable. If your loved one struggles to manage the agreed amount, it’s better to renegotiate quickly rather than let the situation spiral.
3. Consider a ‘Breathing Space’ Period
The UK’s Breathing Space scheme provides legal protection from debt collection activities for 60 days, allowing time to receive debt advice and set up a long-term solution. This could be invaluable for older adults who feel overwhelmed. During this period, most interest and charges are frozen, and creditors cannot chase for payments. It’s not a permanent fix, but it offers a break from the pressure while you and your parent work out a plan.
4. Spotting Common Energy Scams
Scammers often exploit the complexity of energy tariffs or the promise of discounts. Here are some common red flags:
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Fake Emails or Texts: Messages purporting to be from “Energy Support” or a well-known supplier stating, “You’re eligible for a huge rebate—just click here.” Genuine suppliers rarely ask for personal details or bank info via text or email.
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Door-to-Door Sales: Uninvited callers offering “unbeatable” deals that require instant sign-up can be suspicious. Real sales agents should carry valid ID, and you can always say you’ll compare deals at your own pace.
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Impersonation of Government Schemes: Some scammers pose as officials helping with things like the Warm Home Discount or winter fuel payments. In reality, official bodies wouldn’t ask for private bank details out of the blue or push you to pay a fee to access these benefits.
5. Protecting Your Loved One
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Encourage Double Checking: Remind your parent never to respond immediately to pressure, whether it’s a text, email, or phone call. Let them know it’s OK to hang up or delay the conversation.
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Use Official Channels: Advise them to contact the supplier directly using the number on a past bill or the supplier’s official website. This approach ensures they never dial a scam phone number from a suspicious email.
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Doorstep Password Schemes: Ask the supplier if they offer a scheme where any official visitor must present a pre-agreed password. This helps confirm that the person is who they claim to be.
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Regular Conversations: Check in on a regular basis. Ask whether they received any unusual calls, texts, or letters. Reassure them that they can always ask for your opinion.
6. Tapping into Additional Support
Many charities and local organisations help older people facing energy debt. Citizens Advice can guide you through the process of setting up payment plans or applying for grants. Age UK may also provide local resources for practical and financial assistance. Some local authorities run emergency heating funds or short-term relief programmes to help settle outstanding bills.
7. Key Takeaway
Energy debt and scams can wreak havoc on your parent’s finances and well-being if left unchecked. By staying proactive—monitoring usage, ensuring they’re on a fair tariff, and encouraging them to speak up about strange messages—you can shield them from the worst. If debt does accumulate, don’t panic. Debt repayment plans, prepayment meters, or supplier grants may offer solutions. And if you spot a potential scam, step in immediately. A calm, confident approach can keep your older relative safe, warm, and protected from predators looking to cash in on confusion. Knowledge is power; the more you and your parent understand, the safer your finances and peace of mind will be.