Banks spot the energy pain before the price cap does

The bank sees what the meter misses. Santander has contacted almost 150,000 customers it identifies as being under financial strain from energy bills, as reported by AOL.co.uk. That is not a guess. It is a direct observation of direct debits, overdrafts, and repayment patterns inside the bank’s own data.

The price cap will rise by £63 in October, the third increase this year. Ofgem’s adjustment applies to the typical dual-fuel household paying by direct debit. But the cap is a blunt instrument. It tells you the ceiling, not the floor. Santander’s 150,000 customers are the floor: the people for whom that £63 is the difference between heating and eating.

Who qualifies, and who doesn’t

Santander has not published the full criteria it used to flag these customers. But the pattern is familiar from other lenders: missed or reduced direct debits, increased use of arranged overdrafts, and requests for payment holidays. The bank is offering tailored support, including temporary payment reductions and debt advice. Yet the underlying problem is not the payment method. It is the energy itself.

Households in poorly insulated homes with EPC ratings of D or below are paying roughly £300–£500 more per year than those in C-rated homes, according to Energy Saving Trust estimates. The October cap rise will widen that gap. For a 3-bed semi with cavity walls and single glazing, the annual bill could exceed £2,000 even with the cap in place.

What it costs a typical 3-bed semi

Take a typical 1930s semi in the Midlands: gas central heating, 12,000 kWh gas and 3,000 kWh electricity per year, EPC band D. Under the October cap, that household pays about £1,923 annually. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. The work typically costs £0 if the household qualifies for full grant funding, or £200–£500 for partial self-funding.

But the catch is timing. The Great British Insulation Scheme has a limited budget and a finite window. Ofgem data shows that as of June 2024, only about 60% of the scheme’s allocated funding had been claimed. The remaining £180m is still available, but it will not last forever. Households on low incomes or in EPC bands D–G are the priority. Santander’s 150,000 customers are exactly the profile the scheme was designed to help.

What this misses

The bank’s intervention is a symptom, not a solution. It flags the pain but does not fix the leaky walls. The government’s ECO4 scheme offers free insulation and heating upgrades for low-income households, but applications require an energy company assessment and a minimum EPC improvement. The process takes weeks, not days. For a household already in arrears, that is an eternity.

Yet the alternative is worse. Doing nothing means paying the October rise on a draughty home. The bank’s data is a canary. The rest of us should treat it as one.

What to do and by when

The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. Those not on benefits but in EPC band D or below can apply for partial funding through the same route. Santander customers flagged by the bank should also contact their energy supplier directly for a payment plan or hardship fund, suppliers are required to offer these under Ofgem rules. The October cap rise is coming. The work to stop it hitting the household budget starts now.