Let’s talk about “Don’t Pay UK”
In October 2021, the average UK energy bill was £1,400 but ten months later in August 2022 we are seeing the typical bill at a substantially higher rate of £1,977.
Whilst this is a colossal jump, it's nothing considering that come October 2022 this is expected to rise to £3,359 per year before a further rise in January 2022 that could see this rise above £4,200.
This is outrageous and is going to leave millions choosing between food and heating. So this is where Don't Pay UK come in.
The idea of this new petition is that energy firms are currently able to take whatever they want from your bank via direct debit (within reason). So over 100,000 have now signed a petition to stop paying their energy bills via direct debit in October.
Whilst this may seem like a great idea because of the frankly unaffordable costs we are going to get with, it is not the best financial decision.
Unfortunately, these energy firms are too big to try and bring down with something like this and you are in a legally binding contract to pay them for the energy you have used.
If you refuse to pay for that energy they can send it to debt collection and obtain a warrant that will enable them to enter your home and install a prepaid meter that will be debited with what you owe.
Prepaid meters are famously more expensive than the other alternatives and you do not want to end up in this position.
Late payments also have a significant negative impact on your credit score, and if taken to a default or County Court Judgement this can ruin your ability to get credit (e.g mortgages).
I completely agree that the profits these energy firms are making are disgraceful when this is being made at a time when millions can't afford to feed themselves. However, I think that this has got to the point where Governmental interception must be taken rather than forcing thousands to go through this process.
If you simply will not be able to pay your energy bills this winter, the best thing to do is to speak to your energy provider and explain the situation or to contact a debt charity who specialise in this kind of thing.
Whilst it is far from perfect, it is vital to remember that from October, 29 million households in the UK will receive six monthly deductions on their bill for £66.67 (£400 total) and that this will slightly soften the blow.
For those on prepaid meters these discounts will be issued via post, email, or text message which can then be taken to their nearest top-up points.
So I just want to reconfirm that I think everyone signing this petition is well within their rights to do so and I hope that if this does go forward that it makes the big energy firms listen and understand the hardship this is putting people through.
I do want anyone considering it to evaluate their situation though and if they are doing it purely out of principle that it may be better to pay as the effects can be detrimental.
If anyone has any thoughts on this they'd like to share please let me know on Instagram!
Useful links:
https://www.theguardian.com/money/2022/aug/12/people-give-their-views-on-dont-pay-uk-fuel-bills
https://www.bbc.co.uk/news/business-58090533
https://www.moneysavingexpert.com/utilities/what-is-the-energy-price-cap/
https://www.experian.co.uk/consumer/guides/late-payments.html
https://www.gov.uk/government/news/400-energy-bills-discount-to-support-households-this-winter