Confused by a bill or official letter? How AI can explain it in plain English
Most of us know the feeling. A brown envelope lands on the mat. An email arrives from the bank, the energy company or the council. The wording might as well be in another language. You read it twice, put it to one side and tell yourself you’ll deal with it later.
Explaining this kind of paperwork is one of the most useful everyday jobs AI can do. Paste in the confusing part, ask what it means and you get a calm, plain-English explanation in seconds. You can keep asking follow-up questions until it makes sense.
Please read this first. This post shows how to use AI to understand your paperwork. It is not financial advice and AI can sometimes get things wrong.
Before you act on anything to do with money, benefits, pensions or tax, check it with the organisation that wrote to you, on GOV.UK or with a free, independent adviser such as MoneyHelper, Citizens Advice or Age UK.
Everything here reflects the current position and I check and update this post regularly. Rules, rates and schemes do change, especially when the government changes its plans, so look at the “Last checked” date at the top and always confirm the latest position before you act. I’ve written this for readers in England and some of it may be different elsewhere in the UK.
New to this? How to use the examples below.
Throughout this post you will see lines written in italics inside quotation marks. Those are examples of what you might type or say out loud to an AI such as ChatGPT. They are starting points rather than magic words. Any way of phrasing a question works, so ask in whatever words come naturally.
Change them to suit yourself. Swap in your own bills, your own letters, your own questions. Where you see something in [square brackets], that is simply a gap for you to fill in with your own details.
You decide how deep to go. If an answer is too complicated, say “explain that more simply”. If it is too basic, say “tell me more about that”. You can keep asking follow-up questions until it makes sense, at whatever pace suits you.
Before you paste anything in
One simple rule first. Take out anything that identifies you or your accounts: your name, address, account number, sort code, National Insurance number and any reference numbers. AI only needs the wording you want explained.
For anything personal, use ChatGPT’s Temporary Chat (the dotted circle at the top right of the screen) or a Claude incognito chat. Those conversations aren’t saved to your history or used to train the AI.
Energy bills
Energy bills are full of terms like standing charge, unit rate, estimated reading and tariff. AI can explain each one and help you check whether your bill looks about right.
To understand the charges:
‘Can you explain in plain English what a standing charge and a unit rate are on my electricity bill? How do they add up to the total?’
To understand a reading:
‘My bill says my meter reading was estimated. What does that mean and what should I do about it?’
If you think something is wrong, AI can help you write to your supplier. My post on writing any letter in under three minutes shows you how.
Bank statements
Bank statements can be hard to follow, with shortened company names and codes that mean nothing at first glance. AI is good at working out what a payment is likely to be.
To identify a payment:
‘There is a payment on my bank statement that says [DD PAYPAL *NETFLIX]. What is this likely to be?’
If you still don’t recognise a payment, ring your bank on the number on the back of your card. Never use a phone number or link from a message you weren’t expecting.
Pension letters and statements
Pension statements tend to arrive once a year, packed with figures: projected income, transfer values, lump sums and charges. AI can tell you what each term means and what questions to ask your provider.
To understand a statement:
‘My pension statement mentions a [TRANSFER VALUE] and a [PROJECTED ANNUAL INCOME]. Can you explain the difference in plain English?’
To prepare for a call:
‘I have a call with my pension provider next week. What questions should I ask to understand my options?’
If you think you have an old workplace pension you’ve lost track of, the government’s free Pension Tracing Service can help you find it. Be wary of anyone who contacts you out of the blue offering to find or move your pension.
Council tax
Council tax bills show your band, any discounts and how the amount is worked out. AI can explain what your band means and which discounts exist, such as the 25% discount if you’re the only adult living in your home.
To check discounts:
‘I live on my own in [NORFOLK]. Can you explain what council tax discounts or reductions might apply to someone in my situation?’
Your local council decides who gets what, so check the details on its website before you apply.
Checking what you might be entitled to
This is where AI can make a real difference. Billions of pounds of help for older people goes unclaimed every year, often because people assume they won’t qualify.
Pension Credit tops up the income of people over State Pension age who are on a lower income. You can get it even if you have savings or own your home. It can also open the door to other help, such as a Council Tax Reduction, help with heating costs and a free TV licence if you’re 75 or over.
Attendance Allowance is for people over State Pension age who need help with personal care because of a health condition or disability. It isn’t based on your income or savings and you don’t need to have a carer already.
To understand a benefit:
‘Can you explain in plain English what Pension Credit is, who it is for and how I would check whether I can get it?’
AI can explain the basics. To check your own situation, use the Pension Credit pages on GOV.UK or one of the free, independent benefits calculators listed there, such as Turn2us or entitledto. Age UK and Citizens Advice will also go through it with you for free.
If caring for someone is part of the picture, my post on AI and caring for someone close to you covers Attendance Allowance and carers’ assessments in more detail.
Spotting the fakes
Fraudsters know people worry about bills and benefits. Messages about a surprise tax refund, a missed energy payment or a ‘cost of living’ payment are common scams. Genuine organisations won’t ask for your bank details through a link in a text or email. If something doesn’t look right, my post Spot the scam shows how AI can give you a quick second opinion. You can also paste a suspicious message into my free Scam Checker and it will tell you plainly whether it looks like a scam.
Where to get free, independent help
- MoneyHelper: free guidance on money and pensions, backed by the government.
- Citizens Advice: free advice on benefits, bills and debt.
- Age UK (0800 678 1602): free advice for older people, including benefits checks.
- GOV.UK: the official source for benefits, council tax and pensions.
A note on dates. Everything here was checked when it was written and I go back over my posts regularly to keep them up to date. Apps, prices and rules do change, so for anything important a quick look at the official source is worth it.
Want to try this yourself with a little guidance?
Bring a bill or letter you’d like to understand (with your personal details covered up) to a one-to-one session and Kevin will work through it with you on your own device, at your own pace.
Kevin also runs free library presentations across Norfolk. Come along, see AI in action and ask about anything you have read in the blog, including this.
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