All the help available as millions of households facing fuel poverty after £693 energy price rise
MILLIONS of households will be pushed into fuel poverty as bills are set to soar by a record amount, but there is help available.
With almost £700 to be added to the average household energy bill, we explain all the support that's on offer to cover your gas and electricity costs.
Energy regulator Ofgem announced yesterday that the energy price cap will surge to £1,971 from April.
That will bump up the average annual bill by £693.
It comes as Brits are facing additional financial pressures in other areas as food costs and tax bills are also set to rise.
The chancellor announced a package of support for struggling households yesterday, including a £200 bill discount and £150 council tax refund.
But research by the Resolution Foundation shows that 2.5million people will face "fuel stress" due to rising bills, doubling the UK total to 5million.
There's help available for households who are struggling with their energy bills, including grants and state benefits.
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We explain what support is available and how to access help.
£200 off energy bills
After the energy price cap was revealed yesterday, Chancellor Rishi Sunak announced a package of support for struggling households.
All Brits will be able to get £200 knocked off their energy bills.
The discount will be applied to bills in October and will be funded by the government.
However this is a loan and will have to be paid back from April 2023. It will be repaid in instalments of £40 over a five-year period.
£150 council tax refund
The government also announced a £150 council tax refund targeted at low and middle income earners.
It's not directly aimed at lowering energy bills, but is designed to relieve some pressure off household finances, as council tax bills are also set to rise in April.
You can get the refund if you live in a property with a council tax band of A to D.
If you pay your bills by direct debit, it will be refunded into the account you use by April.
If you pay in another way, you can make a claim from April.
Council tax bands are decided by the value of your home - the more expensive it is the more you'll be expected to pay.
Households with more expensive properties won't be eligible for a refund.
You can find out your Council Tax band by checking with your local authority or on the postcode checker.
This is a grant not a loan, so you won't have to pay it back.
Benefits
You should also check you're receiving all the benefits you're eligible for.
Changes to Universal Credit mean more households fit the criteria to receive the benefit.
You can check whether you're eligible for Universal Credit and other state help by using an online benefits calculator.
Charities including for you to check which benefits you're entitled to.
Hardship funds
One of the first things you should do if you're struggling with bill payments, or think you might in future, is tell your energy supplier.
They might be able to help by arranging a payment schedule to get out of debt or help you access existing support scheme.
Many energy providers have their own hardship funds, with some set up to respond directly to the current crisis.
For example, British Gas has a fund to help customers who are in arrears, with a maximum grant of £750.
Octopus Energy customers can get up to £500 to contribute to energy bills.
Contact your supplier to see if they run a similar scheme.
British Gas also has a fund open to non-customers, so it could be worth checking whether you can get help.
Cold weather payment
The cold weather payment is handed out when temperatures plummet to zero degrees or below, on average, for seven consecutive days.
When temperatures drop between November 1 and March 31, are entitled to extra money to heat their homes when this happens.
You may get Cold Weather Payments if you’re getting:
- Pension Credit
- Income Support
- income-based Jobseeker’s Allowance
- income-related Employment and Support Allowance
- Universal Credit
- Support for Mortgage Interest
You get £25 for each seven-day period where the weather is below zero Celsius on average during this time frame.
You can check if your area has had a cold weather payment by from November 1 onward.
Warm home discount
Most warm home discount schemes have already closed, but it's worth checking to see if your supplier is still accepting applications.
If you've missed the deadline, you'll have to wait until October to apply.
It's worth making a note of that as bills could rise even further in October, so the support might be essential later in the year.
The discount is available to people in two groups, the core group and broader group.
The core group is made up of people who get the pension credit element of state pension, and they automatically get the discount.
Households on low incomes or benefits are part of the broader group and have to apply directly to their energy supplier.
The scheme is changing this year, with almost 1million more people eligible for the discount.
The amount you'll get is also being bumped up from £140 to £150.
Household support fund
The government launched a £500million household support fund last year, giving the money to councils to hand out to struggling residents.
The help available varies across the country, as each council has set its own support scheme and eligibility requirements.
But many are offering help with energy bills, as well as food costs.
For example, residents of Wealden in East Sussex can apply for a one-off payment of £250 to pay off energy and water bill debts.
In Runnymede, Surrey, households who are behind on their energy or water bills can get support worth up to £150.
Some schemes have already closed and others will stop accepting applications by March 31.
Contact to find out what's on offer where you live.
Other grants
There are other charity grants available depending on your personal circumstances.
Some are based on your age or gender, while others could be dependent on what job you used to do.
To see whether there are any that apply to you, use Turn2Us'
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If you're worried about paying bills, falling behind or are in debt, there are plenty of organisations where you can seek advice for free, including:
- - 0808 808 4000
- - 0800 138 1111
- - 0808 800 9060
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