Newer version available

There is a newer version of this publication available:
Fuel Rights Handbook 21st edition

6. Rate of repayment

• Repayments below Fuel Direct rates
• Arrears more than six years old
• Paying for your current consumption
• Lump-sum repayments
• Breakdown of repayment arrangement

Fuel suppliers are required to make arrangements for the recovery of debts which take into account your ability to pay.1Condition 27.8 SLC This applies whether you are offered a payment plan or a prepayment meter.

The rate of Fuel Direct deductions (see here) is often used as a yardstick to determine the period over which a debt should be repaid within a payment plan or through a prepayment meter.

If you get universal credit, income support, income-based jobseeker’s allowance, income-related employment and support allowance or pension credit, you may wish to consider the Fuel Direct scheme, but note that this would result in deductions for your arrears over a long period of time. This may not be appropriate if your arrears should be recovered at a lower rate and the deduction rate set is causing your financial hardship, particularly if you have existing deductions in place. Research has led to one charity recommending a new lower minimum deduction rate of £1.2StepChange, The problems of third party deductions, 14 September 2017

 

1     Condition 27.8 SLC »

2     StepChange, The problems of third party deductions, 14 September 2017 »