Cost of living: help with your bills
Help with mortgage costs
Mortgage lenders have committed to help customers during the cost of living crisis.
If you are up to date with your mortgage repayments, your lender should allow you to switch to a new mortgage deal without an affordability test. You will need to stick to the same repayment type and term and you won’t be able to borrow more money. Speak to your lender if your mortgage deal is ending soon.
Lenders should also:
- provide information to help you plan, should your current mortgage rate be ending soon; and
- ensure highly trained staff can help where needed.
The Financial Conduct Authority (FCA) has also issued Guidance for firms supporting their existing mortgage borrowers impacted by the rising cost of living.
The guidance shows that lenders can offer a range of support options to help you avoid, reduce or manage payment difficulties caused by the rising cost of living. For example, support options could include temporarily reducing your interest rate, extending the term of your mortgage, allowing you to make interest only payments or agreeing a short-term reduction in your monthly repayments.
Contact your lender to see what support is available if you are finding it difficult to pay your mortgage or think that you are going to have difficulties in the near future. In many cases, your lender can offer you support without completing an affordability test.
Your credit rating will be affected if you no longer maintain your contractual mortgage payments. Your lender should also explain how any support options they offer you will affect your credit reference file.
If you are behind with your mortgage repayments, also see our Mortgage arrears fact sheet.
Help with Council Tax
Council Tax Support can help someone on low income pay their council tax. Eligibility will depend on your councils criteria.
If you are struggling to pay your council tax, contact your council to check that you are getting any discounts, reductions or exemptions that you are entitled to. Councils may also give further help if you are dealing with exceptional circumstances, for example, if you are in severe financial difficulty.
If you live in England and are entitled to Council Tax Support, the government has announced extra funding which may further reduce your Council Tax bill by up to £25.
If you start to claim Universal Credit, you need to request that you are considered for Council Tax Support when you make your Universal Credit claim. If you currently receive Universal Credit and didn't request Council Tax Support, contact your council to make a claim.
If you are behind with your council tax payments, see our Council tax arrears fact sheet.
Help with energy bills
The Government has announced support for people struggling with their energy bills. The Energy Price Guarantee and the Energy Support Scheme should reduce what you would normally pay and give you money towards your bill for 6 months. You can find out more in the Help with the cost of energy section of our Cost of living: dealing with high gas and electricity bills page.
If you are unable to afford your bill, contact us to help work out what you can afford to pay your energy supplier. Ofgem rules mean suppliers must offer payment plans you can afford. Suppliers can offer:
- a review of your payments and debt repayments;
- payment breaks or reductions;
- more time to pay;
- access to hardship funds; and
- advice on how to use less energy.
Energy providers should not disconnect your gas or electric supply during the winter months (October-March) if you or someone in your property is vulnerable. Contact us if you are threatened with disconnection.
If you are a vulnerable person, you could ask your energy provider to place you on the Priority Services Register. The Priority Services Register can help to make sure that you receive all the appropriate support you need. You can find out who may be classed as vulnerable and what help is available by visiting Ofgem.
If you are struggling with your energy bills, see our Dealing with high gas and electricity bills fact sheet.
If you are behind on energy bill, see our Gas and electricity arrears fact sheet.
Help with Phone and broadband
Broadband and mobile phone firms have committed to do more to help customers who are struggling with payments due to the cost of living crisis. They have agreed to:
- support customers struggling with their bills, including allowing them to move to cheaper packages without charge or penalty;
- accept manageable payment plans;
- support customers who may be struggling with the cost of living and to treat them with compassion, understanding and as individuals; and
- protect the connectivity of their customers known to be vulnerable as a priority.
Contact us to help you work out what you can afford to pay your phone or broadband company.
Many broadband providers have a ‘social tariff’ that limits the cost of phone or broadband for people who receive certain benefits. Ofcom has links to these providers and includes the cost, speed and eligibility criteria for each one. It is worth checking if you are eligible for a social tariff scheme.
If you are behind with your mobile phone payments, see our Mobile phone debt fact sheet.
Help with water bills
The water regulator, Ofwat, has issued guidance for water companies on how their customers pay their bill, access help and repay debts. Water companies should:
- Offer flexible payment and billing to match customers’ circumstances.
- Respond efficiently to customer requests to change payment arrangements.
- Identify and support customers in vulnerable circumstances.
- Tailor debt recovery strategies and review them for suitability, fairness and empathy.
- Refer customers to company’s financial hardship fund or other affordability schemes for help.
- Re-engage with customers over missed instalments and make sure follow up action is proportionate.
You can find the full guidance on the Ofwat website.
If you are behind with your water bill, see our Water arrears and trust fund fact sheet.