£3.5k Energy Bills!?!
It was announced yesterday, on 26 August, that the average energy bill in the UK will rise to £3,549 per year which is a staggering 80% jump from the current cap of £1,971. This will be coming into effect from 1 October 2022.
Understandably, this is going to leave millions of households choosing between eating and heating during the coldest months of the year. However, it is crucial to know what help is available to us all during these difficult times.
Energy Bill Support Scheme
First up is the Energy Bill Support Scheme discount which is being provided to everyone connected to the electricity grid. The Government is providing each household with a £400 total deduction on their energy bills. This will be provided across a period of 6 months from October 2022.
Initially starting with two monthly payments of £66 (October & November) and four payments of £67 (December, January, February & March).
Depending on your supplier, if you pay by direct debit you may receive a credit against your bill or you may need to pay the bills in full and then receive a separate bank refund.
If you are on a smart prepayment meter, then the amount will be added directly to your smart meter in the first week of each month. Nothing further should be required from you.
However, if you are on the traditional prepayment meter you will receive a voucher from your supplier to these amounts each month. Your supplier should confirm how you will be able to receive these vouchers in due course, and likely will need to be taken to your local top-up point.
Winter Fuel Payment
If you were born on or before the 25 September 1956, you can receive between £250 and £600 to help you cover your heating bills. This is known as the Winter Fuel Payment.
This would include a Pensioner Cost of Living payment between £150 and £300 and you would only get this extra amount in Winter 2022 to Winter 2023. This is in addition to any other amount you receive with your other pension or tax credits.
This should be applied automatically and payment should be paid by the end of January 2023. Any income you receive will not impact any other benefits you may receive.
Cold Weather Payment
The Cold Weather Payment is payable if the average temperature in your area is recorded as, or forecast to be, 0 degrees celsius or below, over seven consecutive days.
You will receive £25 for each seven-day period of very cold weather between 1 November and 31 March. The next year's scheme is opening on 1 November 2022 and is the date that you can check whether your area will be due a payment.
In order to receive this payment you must receive pension credit, income support, income-based job seekers' allowance, income-related employment and support allowance, universal credit, and support for mortgage interest.
Household Support Fund
This is a local authority grant available to low-income households and pensioners in order to provide help with energy costs, food costs, etc.
Many of you may have received previous payments from your local councils earlier this year. However, there is a new fund coming in between October 2022 and March 2023.
Whilst there is not much information out there yet, it is worthwhile keeping an eye on your local council's website for more, as and when.
Priority Service Register
For vulnerable customers, you can receive help with;
Reading energy meters
Moving your energy meter for free
Getting your bills sent to someone else (e.g; carers)
Other varying benefits depending on suppliers
If this would be beneficial for anyone that you may know, this is worth looking at.
Difficult times
The large increase in energy costs has been expected for some time, but it doesn't make it any easier to stomach. This exponential increase in costs is going to seriously squeeze the bank accounts of millions of people across the UK and I really understand that this is going to worry a lot of people.
Whilst it isn't possible for us to help you individually, I hope that this breakdown is valuable. If there are any questions that you have on the above, or if you would like an ear to listen to your concerns please feel free to contact us judgement-free on Instagram or via email.
Below, I have listed a number of resources that may be useful to you during these difficult times;
We will continue to try and provide you with as much information as possible.