Inside British Gas' £40m Fund for Tackling Fuel Poverty
British Gas has announced it is committing £40m (US$54m) of funding over the next five years to support households struggling with energy costs.
The funding, set at £8m (US$10m) annually, will be directed to the British Gas Energy Trust, enabling it to expand its support for vulnerable households across England, Scotland and Wales.
The move reflects continued strain on households struggling with finances and the cost of living, with demand for energy and debt advice showing little sign of easing.
The Trust, which is solely funded by British Gas, provides practical support including energy and debt relief grants and emergency fuel vouchers.
It also supports funding for essential household items like fridge-freezers and washing machines, and delivers outreach programmes designed to reach communities most at risk of fuel poverty.
Expanding frontline energy support
The latest investment is intended to scale up the British Gas Energy Trust's services while strengthening its ability to respond to sustained demand.
It forms part of British Gas' contribution to the UK's Warm Home Discount Scheme, a one-off £150 discount off a household's electricity bill.
With British Gas' funding, thousands of households are expected to benefit from both immediate financial relief and longer-term support mechanisms.
Tracey Talbot, Interim CEO at British Gas Energy Trust, said: “This £40 million commitment comes at a critical time for many households who are still struggling to keep up with energy costs.
“Through grants, vouchers, essential household support and outreach in communities, we can provide both immediate relief and longer-term help for those who need it most.
“By strengthening our programmes and working closely with our partners, we can make sure support reaches people not just now, but in a way that creates lasting impact.
“Moving to multi-year funding will also give organisations the stability they need to plan ahead and deliver deeper, more sustained support in their communities.”
Reshaping long-term energy assistance
A key part of the strategy involves overhauling the Trust’s Supporting Communities At Risk Programme.
The redesigned initiative will focus on delivering more targeted and longer-term interventions, with the aim of improving outcomes for households experiencing persistent energy affordability challenges.
In parallel, the Trust plans to shift towards multi-year funding agreements for charities and community organisations.
From April 2027, it will introduce three-year partnerships, replacing shorter funding cycles. This is expected to provide greater financial certainty for frontline organisations, enabling them to plan services more effectively and extend their reach.
Over the next 12 months, the Trust will work closely with partners across the energy and voluntary sectors to assess where support is most needed.
This includes identifying gaps in provision and improving how services are delivered, with the goal of building a more coordinated and sustainable national support network.
Addressing energy debt and fuel poverty
The investment underscores the ongoing challenge of fuel poverty in the UK, as energy affordability continues to shape the wider energy landscape.
Suppliers and support organisations are focusing on interventions that combine immediate relief with structural improvements to resilience.
Gary Booker, Managing Director at British Gas, said: “Tackling energy debt and fuel poverty remains a major priority for us, and we’re committed to working alongside partners and communities to make a real difference for those who need it most.
“By committing £8 million a year to the British Gas Energy Trust, we’re ensuring vital support remains available now and in the years ahead, while giving the Trust the stability it needs to deliver long-term impact.”
The £40m commitment positions the Trust to scale its response during a time that energy affordability is a core issue for households.
It also reinforces the company's longer-term goals to reducing vulnerability and supporting energy resilience.
