British Gas to donate 10% of profits to struggling customers

·Finance Reporter, Yahoo Finance UK
·3-min read
British Gas File photo dated 08/02/07 of a gas hob with a bill from British Gas. British Gas has pledged to donate 10% of its profits during the energy crisis to help people struggling with rising bills. The money will be provided through the British Gas Energy Support Fund, which gives grants to those most in need. Issue date: Thursday August 25, 2022.
British Gas' announcement comes ahead of an expected energy price cap rise on Friday. Photo: PA

British Gas will donate 10% of its profits to help its poorer customers manage rising gas and electricity bills for the “duration of the energy crisis”.

Ahead of an expected rise in the price cap on energy on Friday, the company’s owner, Centrica (CNA.L), said it would donate £12m this autumn into an existing support fund.

The firm said thousands of households would get grants ranging from between £250 to £750. Customers in fuel poverty and with less than £1,000 in savings are eligible to apply for a grant.

Read more: Energy bills to cost £2,000 more this year in ‘winter catastrophe’

The Centrica boss, Chris O’Shea, said: “As a responsible business we want to do more to support our customers during this difficult time. This increased investment in supporting our customers adds to the financial support and advice we already offer and ensures more grants will be available as we go into this winter.

“We’re proud to have put together a £25m-plus customer support package, which will grow.”

Energy bills are set to soar
Energy bills are set to soar

Am I eligible to get this support?

This latest fund launches on 12th September and is designed to help British Gas customers with an energy grant of between £250 and £750. To find out how you can apply, you should check this page closer to the launch date.

British gas also has an Individual & Families fund that open to anyone with an energy debt between £250 and £750. You don’t even need to be a British Gas customer to apply.

The British Gas Energy Trust has other grants and encourages UK households to contact their local Money Advice Agency for help before applying for a grant. Getting advice helps your chances of a successful grant application.

Once families have sought advice, the British Gas Energy Trust may be able to provide a grant for those struggling to pay off gas or electricity debt.

Grants over £1,500 will only be considered in exceptional circumstances. As part of the application, British Gas will want to understand how you will be able to manage your energy costs in future.

Debt relief grants are available to both British Gas customers and customers of other energy suppliers.

If you are struggling with domestic gas and electricity debts owed to British Gas or other suppliers you can apply for a grant from the energy supplier to clear that debt.

How much money is there to help UK households?

British Gas' offer of support will be based on the company's retail supply profits, which were £98m before tax in the first-half of 2022.

However, Centrica enjoyed £1.3bn operating profits in the first six months of 2022, five times the amount from the same period last year of £262m.

Read more: Energy bill discount must go up to £1000 to help UK households, Which? warns

British Gas said it is offering the largest voluntary aid package of any UK energy supplier, with a total fund of £18m over the last eight months, including the new funding which will be backdated to the start of 2022.

Analyst Cornwall Insight now predicts average energy bills will increase to £3,554 in October and £4,650 in January.

Watch: Why are gas prices rising?