EXPERTS have warned against taking part in the growing Don’t Pay campaign – saying failing to pay energy bills could exacerbate the cost-of-living crisis for those refusing to pay.
Activists are encouraging people to stop to pay their energy bills from October 1 if no action is taking on soaring rates.
They claim if enough people take action, there will be too many for legal action to be taken against refuseniks.
But Mike Dailly, principal solicitor at community justice hub the Govan Law Centre in Glasgow, said this was misleading - warning refusing to pay could ultimately result in higher bills, the installation of rip-off pre-payment meters and damage to credit ratings.
Dailly, who last year launched a free debt advice service, stressed he had “absolute sympathy” with the campaign, which has seen more than 70,000 people pledge to stop paying their bills.
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And Citizens Advice Scotland – a leading charity which provides debt advice and support on housing, bills and benefits – said: “Withholding payment is likely to lead to a worse situation for people.”
It's a simple idea: We demand the govt scrap the energy price rises and deliver affordable energy for all. We will build a million pledges and by Oct 1st if the govt and energy companies fail to act we will cancel our direct debits. Read more here: https://t.co/NPF8VQXcHD pic.twitter.com/E4gPenIXiL
— Don't Pay. (@dontpayuk) June 18, 2022
Organisers point to the All Britain Anti-Poll Tax Federation, which orchestrated a campaign of non-payment to the hated policy ultimately resulting in up to 18 million people not paying the Community Charge, as evidence such campaigns can work.
“It’s not the poll tax,” said Dailly. “Not paying your poll tax, as it was then, doesn’t get reported as a default, so it doesn’t affect your credit rating.
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“I think it’s wrong to compare the Don’t Pay campaign to the poll tax.
“I think what they’re proposing to do carries considerable risk.”
“There are three difficulties with not paying your gas and electricity bills. One is – it might actually cost you more.
“If you don’t pay, you’ll get late payment fees added on and you’ll also get put on a higher tariff.
“Secondly, not paying is a default and can be reported to the credit rating agencies, so that’ll affect your credit score, if you want to borrow money in the future, that’s going to have an impact.
“The third thing is you’re running the risk of getting into arrears and these late charges being added on, your supplier ultimately has the ability to install a pre-payment meter.”
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He said he believes the solution is “political” as he urged party leaders and the Government to take action – saying people currently in desperate financial situations caused by debt should seek professional advice.
A Citizens Advice Scotland spokesperson said: “We understand the frustrations people are feeling, but we fundamentally do not support the action suggested by this campaign as withholding payment is likely to lead to a worse situation for people.
“The most likely scenario here is getting into debt to your supplier - which will ultimately make your bills more expensive and add to people’s stress and anxiety.
“If the market ever returns to a place where switching is an option for consumers again, being in debt makes that more difficult.
“There is also the possibility of the installation of prepayment meters if people withhold payments which again will mean paying more for energy.
READ MORE: Activists storm Scottish Power headquarters in protest over soaring energy bills
“We need to see significant and radical intervention from government to deal with this crisis, and that needs to happen urgently.”
Dailly’s intervention comes as pressure ramps up on the Government to take action on the cost-of-living crisis facing the country.
The Bank of England has predicted a recession from October – when average monthly bills are expected to reach £300 – until the end of 2023, as inflation is predicted to reach 13%.
Activists backing the campign occupied the headquarters of Scottish Power on Tuesday in a protest over soaring energy bills, while both Nicola Sturgeon and Gordon Brown have called for an urgent meeting of UK leaders to formulate a response to the crisis and an emergency budget, respectively.
Boris Johnson has also ruled out taking any action in his remaining time as Prime Minister.
Meanwhile, Liz Truss – currently the favourite to replace Johnson in Numbver 10 – has ruled out what she called “handouts” to struggling families.
The Don’t Pay campaign has acknowledged there are “concerns and questions about potential risks” of taking part including the threat to credit scores or being cut off.
A spokesperson for the campaign told The National: “While we know there are ways to mitigate these, the reality of the situation is that millions of people will face these anyway if we don’t take this action.
“And they’ll have to face them on their own. We want to build our collective power, support our neighbours and give people hope that things can be different.”
The campaign is “consulting extensively with legal experts and experts around personal debt”, the spokesperson added, noting that “people literally cannot afford not to” take action on the cost of living.
The campaign will only take effect if organisers meet their target of one million people pledging to take part – so far, they have reached just 7.5% of this goal.
Lauren Fulton of the Don’t Pay campaign added: “This crisis has put hundreds of thousands into a situation where they will literally not be able to pay energy bills. Credit ratings, pre-payment meters and other coercive threats aren't going to change that.
“We will not be asking people to take action until we have reached the critical mass necessary to force a solution to the scandal of unaffordable energy bills."
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