Warning over predatory 'bill management' services

'Bill management' services promise to make your life easier by managing your bills for you – for a fee. However, that's not always how it works out.

In one particularly shocking example, an elderly couple - one of whom was suffering from a serious illness - spent 22 months paying £45 / month in fees for this 'service', only to discover that they were actually over £1,500 in debt to their gas and electricity suppliers. It transpired that the 'bill management' service – to whom they had paid almost £1,000 in fees by this point – hadn't actually been paying their bills in full.

Another person, living in a one bedroom flat, was being asked to pay over £3,150 a year (including £145 in 'fees') to cover their gas, electricity, water bills – far in excess of their actual useage.

Over two-fifths (43%) of UK households are currently struggling with energy bills and spending more than 10% of their household income on gas and electricity, according to recent research by the University of York. Of these, almost 5m households are spending more than 20% of their income on energy, meaning that they are in deep fuel poverty.

Meanwhile, the level of energy debt has increased to an all time high, with millions of households owing a combined £5.5bn in debt.

Founded in 2012, local community benefit cooperative Energise Sussex Coast works to tackle the climate crisis and energy injustice through community-owned renewable power and energy-saving schemes. It runs a free Energy Advice service to help local residents bring down the cost of their electricity, gas and water bills: 01424 390 062.

A recent user of ESC's energy advice service said: 'Amazing service … [Your advisor] helped me to address a worry with my energy provider about a debt I seemed to have since changing to a smart meter, that wasn’t there before. She also put me forward for a new washing machine [enabled] by a grant, which was so essential and needed as I was very worried about how I would afford one.' Another said: 'Last week I had a chat with Energise Sussex at your advice desk and my water bill has already halved!'

Energise Sussex Coast's director Kate Meakin said: 'These "bill management" companies claim to make your life easier for you, but – as our advisers have uncovered – the reality is sometimes shockingly different. Some people appear to be being "directed" into these arrangements by estate agents and aren't really aware of what they're signing-up for. So be aware of the dangers, read the small print and remember the golden rule: if it sounds too good to be true then it probably is! And if you're struggling with energy or water bills and / or debt then don't forget that Energise Sussex Coast's free and impartial advice service is here to help: call or text 01424 390062 (local rates) or email [email protected].'