Get Help With Your Energy Bills!

Gordon Brown and Co. have talked a lot about energy efficiency and social tariffs recently, but are you eligible? And more importantly, how can you get access to these and other valuable discounts?

It's been over a month since Gordon Brown announced a range of energy saving measures to help get us through the winter months. And, while his strategy to insulate instead of compensate was welcomed as a sensible approach by some, it was dismissed as not doing nearly enough by others.

But debates aside, one other way you could cut your energy bills is by switching to a social tariff.

Social tariffs are offered by energy companies to help vulnerable groups such as the elderly and those on low incomes to tackle fuel poverty (defined as spending more than 10% of household income on energy bills).

Back in July, energy regulator OFGEM declared that all social tariffs must at least equal the cheapest deals that suppliers offer. The energy companies also planned to increase social programmes by £225 million between 2008 and 2011.

However, I suspect that some of these millions haven't hit their target. How many people actually know if they qualify for one of these tariffs? And what help is available if you're not eligible?

The social conundrum

The trouble with social tariffs is they are often not very well publicised. Qualifying criteria differs vastly between providers, and many suppliers are not pro-actively approaching customers who meet the requirements. As a result, many people are missing out on some pretty vital benefits.

So, in an effort to clear things up, here's a table of the `big six' energy suppliers, and the tariffs available to those who may need help:

Company	What is offered	Qualifying criteria	Contact Number
E.ON	StayWarm provides fixed prices from 12 months after you sign up dependent on how much energy you use.	Under four people must live in a home with three bedrooms or less. In addition, at least one person in the house should be over 60 years of age. Customers also need to take both electricity and gas from E.ON and agree to pay by monthly Direct Debit.	0845 303 3060
EDF Energy	Energy Assist Tariff provides a 15% discount on fuel bills.	Customers must either spend more than 10% of their total net annual household income on energy costs or be in receipt of income support and/or pension credit benefits.	0800 096 9000
NPower	Spreading Warmth tariff provides annual discounts of up to £125 per fuel	Customers must have a household income of under £13,500, and at least one person in the house should be over 60, under 16, disabled, or have a chronic illness.	0808 172 3999
Scottish Power	CareFree Plus offers qualifying customers a fixed discount of up to £112 per year.	Customers must be aged 60 years or over, registered on Scottish Power's CareFree Scheme or in receipt of selected state benefits.	0845 2700 700 and ask for the CareFree team.
Scottish and Southern	energyplus Care gives qualifying customers receive up to 20% discount on their current fuel prices, regardless of which payment method they use.	Customers must spend more than 10% of total household income on energy bills.	0800 622 838

As you can see, the range of help available varies considerably according to your provider. While some companies decide your eligibility by the amount of money you spend on fuel relative to your income, others focus on the people living in your home or how much energy you use.

And, some don't currently offer any specific social tariffs at all. British Gas recently removed its Essentials tariff, replacing it with `Essentials Advance', which focuses more on energy efficiency.

British Gas currently has half-a-million customers on its social tariff, and does plan to re-introduce Essentials early next year. But while we wait for the application doors to open once more, it is encouraging its most vulnerable customers to take advantage of free insulation, plus £50 off their next bill once work has been completed.

Chill-proof your house!

In addition to these social tariffs, there is other financial assistance available to those who need it most, as well as a number of cost-effective measures you can take to ensure your home is well insulated this winter.

For example, the Winter fuel payment is an annual tax free benefit for those aged 60 and over and living in the UK. The actual amount you get depends on your personal circumstances, but has been increased to £250 for over-60s, and £400 for over 80s this year.

If you're already receiving a state pension or other selected benefits, you should receive the payment automatically. If not, you can apply by following this link, or by calling 08459 151 515. The deadline to get this year's payment is 30 March 2009.

If you're interested in insulation, the Warm front scheme in England provides grants of up to £4,000 to heat and insulate your home, and is available for individuals on selected benefits. There are also similar schemes available in Scotland, Wales and Northern Ireland.

In addition, special cold weather payments are available when average temperatures dip below zero degrees Celsius for seven consecutive days. Payments were increased from £8.50 to £25 as part of Brown's energy measures, and will be made automatically as long as you fall under one of the qualifying groups.

In addition to these energy schemes, last month BT launched Basic - a telephone plan designed to help lower income families with the cost of their telephone bills.

Instead of the usual £31.50 per quarter line rental, customers pay £13.50, which includes £4.50 per quarter in calls (outside the allowance, calls to UK landlines cost 10p per minute).

To qualify, you need to be in receipt of income support, income-based jobseekers allowance or guaranteed pension credit. Potential applicants can call 0800 783 1675 to request an application form.

Diving in with direct debit

The way you pay your bills can also determine the potential savings you can make. According to government statistics, 41% of gas and 39% electricity customers pay their bills by cash/cheque/debit card. By switching to direct debit, these customers could make an annual saving of £55 and £46 respectively.

In addition, if you pay your BT bill by direct debit, you'll avoid an extra £4.50 a quarter charge on top of your bill. With this equivalent to an £18 a year saving, this soon adds up.

Of course, paying by direct debit is not always an option for everyone, and many still find it more comfortable to pay at a bank with cash or a cheque. However, in terms of being Foolish, trusting `what you know' will end up costing you more.

Finally, if these waves of energy news have left you feeling rather confused, why not compare your current tariff to the rest of the market to see if you could switch to a more competitive deal? You have nothing to lose, and in this unpredictable energy market could also end up saving yourself a pretty tidy sum.

More: Energy Suppliers Are Worse Than A Year Ago / Cheaper Petrol And Gas In 2009