Households are still slumping under the weight of high utility bills – but the good news is that government help for living costs is still coming this year.
Some existing aid will remain available this year, and a report by MPs from the public accounts committee has suggested that the government could announce new aid measures.
Most households currently pay around € 2,500 per year for energy. This is due to fall from July, but only to £2,074.
And longer-term projections suggest that bills will not fall significantly. Analysts from Cornwall Insight think the average home will pay around £2,000 a year for gas and electricity until at least March next year.
Increased: Households will face high energy bills in the coming months, experts warn
Some of the government’s major aid schemes, such as the £400 per household utility bill support scheme, have now ended and will not be renewed.
However, support is still offered. Here’s an overview of all the government support to come, including cash payments worth hundreds of pounds.
Energy bill capped until April 2024
At present, most households pay utility bills that are limited by the Ofgem price cap.
That price cap is currently £3,280 for normal gas and electricity consumption, which will drop to £2,074 in July.
However, most homes now pay £2,500 thanks to government support called the Energy Price Guarantee.
The EPG will be increased to £3,000 a year in July and will expire in April 2023. After that, households will again face paying open market prices for energy.
About 80 per cent of households pay around £2,000 a year, the predicted level of the Ofgem energy price cap, based on average gas and electricity consumption.
Possible cheap social tariffs for energy
The government could also introduce cheap social rates for energy, the public accounts committee said.
Social rates are special cheap deals that are common for broadband and mobile phone customers.
Warming up: The cost of utility bills has risen to four times its normal level
They are normally open to low-income or means-tested clients.
The government could introduce social energy tariffs as part of its planned wider reform of the energy sector.
Cheaper bills for homes on benefits?
Another government consideration is to discount household utility bills from benefits, the Public Accounts Committee said.
This reform could also include reducing competition in the energy market, which is currently full of providers who all sell energy at roughly the same price.
However, the government has not yet confirmed how it will do this, only that it has plans for wider reform of the energy market.
£600 for benefit claimants
Households on benefits such as Universal Credit will get a further £600 this year and next.
These living expenses go to beneficiaries of benefits such as:
- Universal credit
- Income-based benefit for job seekers
- Income-related labor and support allowance
- Income support
- Tax credit works
- Child tax credit
- Pension credit
€ 301 has already been paid this year. That will be supplemented by a second payment of £300 in the autumn and £299 in early 2024, although no exact dates have been announced.
Pensioners will get up to £300 this winter
Pensioners fueled in winter will also be eligible for £150 or £300 this year as pensioner living expenses payment.
The money is intended to help pay energy bills, which tend to be higher for the elderly as they need warmer homes and may have medical equipment that can be plugged in.
Winter fuel payments are worth up to £600 and are paid to households with someone born before 26 September 1956.
In addition, eligible applicants should automatically receive a cost of living payment of £150 or £300 for pensioners.
Help: Pensioners receiving winter fuel payments may be eligible for £150 or £300 as pensioner living expenses payment
The £150 disability cost of living
More than six million people receiving certain disability benefits will be eligible for a payment of £150 this year, paid automatically.
The government has not yet set an exact date for this, but says it will be in the summer.
Cash or vouchers for struggling families
Households struggling with the cost of living can apply for cash and vouchers from the Household Support Fund.
That’s a £2bn pot of public money distributed by local councils to people in their area.
The scheme is a postcode lottery, as each municipality decides how the money is distributed – and to whom.
Some municipalities issue vouchers, others, for example, in cash.
Local authorities have distributed cash and vouchers worth several hundred pounds per home.
Anyone can apply, but they may have to meet eligibility rules, such as being on a low income.
However, the scheme ends on June 30 and some municipalities have already run out of money.
Warm Home Discount
The Warm Home Discount is a payment of £150 towards energy costs.
It goes out to two groups: those who receive the Guarantee Credit component of Pension Credit and those with certain means-tested benefits.
Households with a standard meter get the £150 off their bills, while households with prepayment meters get a voucher.
Payments will be made between October 2023 and March 2024.
Subsidies from energy companies
Some energy companies help difficult customers with subsidies and payment arrangements.
For example e.geligible British Gas customers can get grants between £250 and £750.
However, the help you can get from your power company depends on your circumstances.
Contact your power company to see what help they can offer.
These are the energy companies with relief schemes that are still running:
- British Gas Energy Trust Individuals and Family Fund
- British gas energy trust
- EDF Customer Support Fund
- Eon and Eon Next grants
- Octopus energy
- Ovo energy
- Scottish Power Hardship Fund
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