British Gas is offering £50 to anyone who passes on the details of a vulnerable person who needs their home insulated. Read on to find out why.

By Charlotte Beugge

British Gas is offering £50 to anyone who can pass on the name of an elderly person or a family on benefits who needs to have their home insulated for free.

The action is needed because energy firms have found it hard to comply with government targets to have free insulation installed in half a million "needy" homes by next year. They have found it hard to persuade such households to come forward.

As a result, the BBC says that British Gas is offering individuals the chance to claim cash by referring vulnerable family members, friends and neighbours for free loft or cavity wall insulation.

British Gas says loft insulation can save households £175 on their heating bills and cavity wall insulation can save £135.

To qualify for the British Gas offer, the low-income families must be either on pension credit, child tax credit with an income below £16,190 or on income-related benefits in most cases with a child or a disability. Both the recommender and the household recommended will each get a £50 payment.

Audrey Gallacher, director of energy at Consumer Focus, told the BBC that search fees to find vulnerable customers could cost about £120, so the latest idea was a good option but added that the cost would work through to bills.