34 ways to get help with bills before Christmas if you’re struggling financially

BETWEEN the effects of the coronavirus pandemic and the onslaught of the festive season, more of us than ever are struggling to pay the bills.

But if you’ve lost your job due to coronavirus, or are simply feeling the squeeze this year – there’s loads of schemes available that can help you make ends meet.

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From grants and loans to payments holidays and advice, we round up all the ways to cut costs and get help paying the bills before Christmas.

Help with energy bills

The Winter Fuel Payment is a one-off, tax-free payment designed to help with the cost of heating.

You can get between £100 and £300 depending on your individual circumstances as long as you were born on or before October 5, 1954.

Most people who are eligible get it automatically, for instance if you receive the state pension.

If you meet the criteria but don’t automatically get the payment then you will need to apply here.

The cold weather payment scheme is designed to help low-income households with energy bills in winter.

From November 1 to March 31, eligible Brits get £25 for every seven day period where the weather is below 0C degrees.

You can check if your area has had a cold weather payment on the government’s tool.

You’re eligible for the cold weather payment scheme if you’re in receipt of one of the following benefits and meet certain criteria:

• Pension credit
• Income support
• Income-based jobseeker’s allowance
• Income-related employment and support allowance
• Universal Credit
• Support for mortgage interest

You can find out more about who qualifies for the scheme in our guide.

You don’t need to apply for the cold weather payment as it’s paid automatically.

But, if you don’t get it and think you should, contact the pension centre or Jobcentre Plus office, or call the Universal Credit helpline on 0800 328 5644.

• Warm Home Discount Scheme

Low income households can get up to £140 towards their electricity bills thanks to the government’s warm home discount scheme.

It is usually paid directly to your energy supplier who then applies the discount to your bills.

You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity.

There are two ways to qualify for the Warm Home Discount Scheme:

• If you get the Guarantee Credit element of Pension Credit (the ‘core group’)
• If you’re on a low income and meet your energy supplier’s criteria for the scheme (the ‘broader group’)

If you’re in the core group you should receive a letter telling you what you need to do. If a letter hasn’t come by the end of December – call the helpline on 0800 731 0214.

If you think you’re in the broader group then you need to check with your supplier to see if you meet the criteria and how to apply.

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• Health Through Warmth scheme

This was scheme set up in 2000 by fuel poverty charity National Energy Action and the NHS.

It aims to improve warmth, comfort and quality of life for vulnerable people who have cold-related illnesses and need help with installing heating and insulation, or making repairs to existing systems or appliances which they can’t afford themselves.

HTW is available across England and Wales to vulnerable people who meet the eligibility criteria.

You will need to fill in an online referral form here.

• Grants to pay off energy debts

If you’re in debt to your energy supplier, you might be able to get a grant from the British Gas Energy Trust to help pay it off.

This scheme is available to anyone – you don’t have to be a customer – and you can find out more and apply here.

Several companies also offer a grant scheme for their customers including:

The conditions of each scheme vary, so contact your energy provider to find out more.

• Switching energy supplier

If you’re on the Standard Variable Tariff then you are probably overpaying by hundreds of pounds a year.

Switching is easy, Use a comparison site such as Money Supermarket, uSwitch or EnergyHelpline.com to see what deals are available to you.

The government has estimated that families save around £200 per year when switching from the SVT to a top market deal.

• Reducing the amount of electricity and gas you use

Reducing your consumption is another great way to reduce costs.

Simple tricks such as switching off the lights in rooms you aren’t using, turning down the heating by one degree and using LED lightbulbs can all make a big difference.

Insulating your home can save you thousands of pounds, and the Green Homes Grant scheme even means you can get money from the government to do it.

For instance, loft insulation can reduce energy bills by £215 per year, according to Which?. Cavity wall insulation can save you £245 every year.

Families can get vouchers worth £5,000 – or £10,000 for low-income households – to spend on energy-saving improvements in their home.

You can find out more and apply on the government website.

It’s also worth checking with your provider as many offer free insulation or schemes and funding to help you pay. Check out our guide to see who offers what.

• Extra help from your supplier

If you are struggling due to the pandemic, most energy suppliers have schemes to help you.

Gas and electricity customers struggling to pay will be offered « realistic and sustainable repayment plan », according to the watchdog Ofgem.

If you need help, make sure you speak to your provider to see what they can do.

If you have a prepayment meter and you can’t top up – either because you are isolating or because you can’t afford to – your energy provider must help you.

For instance, it can let someone else top up for you, send you a pre-loaded top-up card, or increase your emergency credit limit.

Contact your supplier if you think you will need help.

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Help with water bills

Lots of water suppliers have social tariffs designed to slash bills for customers with lower incomes.

Different companies have different eligibility criteria and rules on how much you can save.

You can see what your water company offers and how to apply here.

Watersure is an independent scheme that can help low-income families by capping their water bills.

To apply for the scheme you’ll have to prove you need a lot of water, for instance if you:

• have more than three school-age children living in the house
• have a medical condition that means you need lots of water, such as weeping skin diseases, Crohn’s disease or ulcerative colitis.

You can apply through your water company.

Installing a water meter can help you save money and get back on track with your bills.

It also means you can cut costs by reducing the amount of water you use in the house, for instance by shortening showers by five minutes.

If you own your own home, you can apply to have a water meter installed through your supplier. If you rent you may also be able to get one, but you might need your landlord’s permission.

You can use this online calculator to work out if you will be better off.

If you’re struggling with your bills because of coronavirus, you must speak to your provider.

The type of help will vary depending on which water company you are with, but options include a payment holiday, changing your payment plan or being moved to a cheaper tariff.

If you owe a lot of money you might be able to get help through a hardship scheme or charitable trust.

You can contact your water supplier or visit their homepage to see what services are available.

To check who your provider is you can enter your postcode here.

Help with phone, broadband and TV bills

Make sure you’re shopping around to get the best deal across your broadband, phone line and TV packages.

On average, households that switch save £69 per year according to the Money Advice Service.

Make sure you use comparison sites and you match the deal to what you actually need.

• Discounts if you’re on benefits

Households on benefits such as Universal Credit can get access to cheaper broadband deals through BT’s social tariff.

The telecom provider’s Basic package costs £5.16 a month for home phone or £10.07 a month if you want unlimited broadband included.

You’ll need to order an application form from BT by calling 0800 800 864 – and you’ll have 14 days to return it after receiving it.

Again, any customers that have been impacted by coronavirus and can’t afford their bills must let their provider know.

All the main broadband and mobile phone companies have confirmed that they will support customers.

If you can’t pay your broadband you won’t be disconnected.

Help with your rent or mortgage

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• Housing element – universal credit

You can get help paying for your rent or mortgage if you’re eligible for Universal Credit. This is called your housing element.

Your housing payment can help you pay:

• your rent to a private landlord
• your rent and some service charges if you rent from a housing association or local authority
• interest payments on your mortgage and some service charges if you or your partner own the property you live in.

How much you’ll get depends on your specific circumstances. You can find out more and how to apply here.

• Mortgage interest help if on benefits

If you’re a homeowner, you might be able to get help towards interest payments on your mortgage or loans you’ve taken out for certain repairs and improvements to your home.

This help is called Support for Mortgage Interest (SMI). It’s paid as a loan, which you’ll need to repay with interest when you sell or transfer ownership of your home.

Those claiming Universal Credit, Income Support, Jobseeker’s Allowance, Employment and Support Allowance, and Pension Credit can apply.

You can’t use it for your mortgage repayments or any money you owe in arrears.

You can find out more and how to apply on the government’s website.

If you are a homeowner, you need to check when your mortgage is up for renewal and make sure you are getting the best deal.

The Money Advice Service estimates that you can save thousands of pounds by shopping around.

• Mortgage payment holidays

In November, the government announced that anyone who hasn’t already applied for a mortgage holiday because of coronavirus is still allowed to do so until 31 March 2021.

But taking a mortgage holiday should be a last resort, so you should only ask for one if you really need it.

It won’t affect your credit score, but you will keep racking up interest which could cost you in the long run.

In fact, taking a mortgage payment holiday because of coronavirus could cost you £2,769 in higher repayments.

Mortgage borrowers who are experiencing payment difficulties should speak to their lender to agree a tailored support plan.

This could be longer breaks, repayment plans or other solutions.

Legally, if you rent your landlord doesn’t have to offer you a break, but that doesn’t mean it’s not worth asking.

Some landlords might agree a payment pause, which could help you if your finances are tight.

Help with council tax

• Split payments across 12 months

Most people pay their council tax in 10 installments, but if you’re struggling financially you can switch to paying monthly.

This won’t actually reduce your bills overall, but it will help spread the cost to make thinks more manageable.

To do this, you need to speak to your local council.

Council Tax is based on two adults living together so if you live alone or you’re a single parent you can get a discount of 25%

There are discounts available for people with disabilities, for instance if the disability means you need to live in a bigger house. You can find out more on the government website.

Most councils also run a Council Tax Support Scheme for households on lower incomes. For instance, you might get a reduction in payments if you are on certain benefits.

Eligibility varies depending on when you live, but you can check what your local council offers on its website.

• Check your council tax band

How much council tax you pay depends on which band you are in, and Money Saving Expert estimates that up to 400,000 homes in England and Scotland are in the wrong one.

Challenging your council tax band does have some risk, as your bills could actually rise if you get moved up. That said, if you go down a band you could save hundreds.

Read our guide to challenging your band as well as how to check whether you’re likely to be successful.

Councils in England have a hardship fund to help people who are struggling to pay their Council Tax bills because of coronavirus.

The government expects the fund to support 2.3million vulnerable Brits by slashing their council tax bills by £150 a year.

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Help with loans or debts (credit cards, loans, car finance, buy now – pay later, payday loans)

• Interest free credit card

One good method for reducing debt can be to shift it to an interest-free credit card.

This means that rather than spending your money lining the pockets of banks and other lenders, you’re actually paying off what you owe.

We’ve rounded up some of the best deals here.

If you owe money to lots of different people you should look at prioritising repayments to the highest interest rates. That means you will minimise the amount of interest you pay.

Most credit cards are offering payment holidays of up to three months which can help if you are unable to make your minimum repayments.

Loans providers, buy now – pay later schemes and pawn shops all have measures available to help customers too.

These should be a last resort, so only opt for a holiday if you really need one.

• Other measures to help with coronavirus

If you’re struggling to meet your repayments because of the pandemic then have a chat with your lenders.

They may be able to offer you solutions such as lower interest rates or a repayment plan to help you get back on your feet.

Help with insurance premiums

Shopping around for insurance can save you significant money, so you should do it whenever a policy is up for renewal.

Common types of insurance you can save money on include:

• Travel
• Buildings and cotents
• Car
• Pet
• Phone
• Life

Make sure you try a few different comparison sites and don’t forget that some insurers such as Direct Line don’t use them at all.

Check your limits and excesses carefully to make sure that you’re getting the right levels of cover – cheapest isn’t always best.

If you ask your insurance company to, it should look at ways of reducing your premiums.

This can include looking at the level of cover you need, removing extras you don’t currently use and waiving fees.

Insurance companies don’t have to offer you payment holidays, but lots will.

Once again, this should be a last resort, so only ask if you’re unable to find a better way to reduce your bills.