The Scotsman

Energy companies are failing vulnerable customers with their late payments

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Once again, this year we are seeing energy companies failing in their social responsibi­lity to tackle fuel poverty and help the most vulnerable in society.

For the last few years a warm home discount scheme of £140 has been available to elderly, and people on certain benefits to help during the cold weather period.

The problem with this scheme is that energy companies are not administer­ing it properly. They have until 31 March to make the payment. This may be fine for people who pay monthly or quarterly by direct debit to get a credit at the end of the winter period.

But for people like myself who are on prepayment meters, we are generally the last to receive it. Despite applying in September I am still waiting.

The scheme is devised to help vulnerable customers through the coldest months of the year, before the cold weather and not after. This is a support system initiated by the government to help those who at times have to choose between heating or eating.

This problem happens every year and it never changes. There needs to be a change in the law so that energy companies have to pay the credit before 1 December so that help goes to the most vulnerable.

GORDON KENNEDY Simpson Square ,Perth The Scotsman highlights a report from Enterprise Tax Consultant­s which claims that Britain’s complex tax system is to blame for triggering a rise in business failures because of their debts to HMRC (‘Debts to taxman triggering more business failures’, 15 January).

I don’t buy that at all. Most of the debts due to HMRC relate to either PAYE monies deducted from employee wages and which the employer is required to remit to the Government, or VAT collected from customers which is likewise payable to the Government. In both cases the business is merely acting as agent to collect and hand over these taxes to HMRC.

I believe in too many instances businesses which are in difficulty find it convenient to delay paying the PAYE and VAT bills to help their own cash flows, and we, the taxpayers, end up footing the bill if the business goes under.

As mentioned in the report, HMRC does endeavour to help businesses by allowing time to pay where appropriat­e, but I think this often means the taxpayer still ends up out of pocket, and in my view it is simply wrong that PAYE deducted from employees ends up unpaid and is a debt due to HMRC by a failing business.

No doubt the tax rules could be simplified and improved, but the rest of us ordinary tax payers pay our tax bills and so should businesses.

GORDON SHEPHERD Douglas Terrace, Broughty Ferry,

Dundee,

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