British Gas has extended a scheme offering up to £250 credit to help prepayment customers struggling to cover their energy bills.

The credit is non-repayable and will go directly to vulnerable customers with the project in action throughout this coming winter.

The supplier has now increased its funding for the prepayment support, committing £20million to the help scheme.

Chris O’Shea, CEO of Centrica, parent company of British Gas, said: “Despite lower energy costs, we know that the cost of living is still a big problem for many households, and customers will still need support this winter.

“Companies have a duty to support loyal customers through difficult times and our £100 million support package, the biggest ever offered by any supplier, means that we can make sure help is available to those who need it most.

“As well as funding grants and advice centres, our expert teams will be reaching out to our customers who could benefit from direct support in the form of free credit on their meters.”

British Gas provides grants up to £1,500 available to all Britons struggling to pay their energy bills, through the British Gas Energy Trust.

The scheme is open to people in England, Scotland and Wales, and applicants must have a prepayment meter in their main residence.

People applying for the support must also be seeking the funds to clear an outstanding debt on a current or open gas, electricity or dual fuel energy account.

The supplier has also relaunched its British Gas Post Office Pop Ups, where advisors can help people check for any benefits they are entitled to and provide energy-savings tips.

British Gas is one of six major suppliers who have been fined by regulator Ofgem for failing to meet targets for installing smart meters.

The supplier will pay £3.4million into an Ofgem fund that supports vulnerable households, while Ovo is to pay £2.4million and Bulb will pay £1.8million.

The six companies – British Gas, Ovo, Bulb, E.ON, Scottish Power and SSE – are to pay out a total of £10.8million after missing their 2022 installation targets by just over one million meters.

Cathryn Scott, director of enforcement and emerging issues at Ofgem, said: “The installation of smart meters is a vital step in the modernisation of our energy system and the path to net zero by 2050.

“Smart meters give customers better information about their energy usage helping them budget and control their costs.”

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