MARTIN Lewis has revealed how struggling households can get free cash to help pay their energy bills.
With energy bills set to go up by £500 for the average household from next month, the money-saving expert has explained what help is available.
1
It was announced earlier this week that Ofgem’s energy price cap will fall to £3,280 from £4,279 due to a drop in wholesale prices.
But what you’ll pay will still go up by 20% due to the government’s Energy Price Guarantee (EPG) increasing from £2,500 to £3,000 from April 1 for the typical household.
Martin Lewis is among the experts now calling on the government to reduce the EPG, to reflect the falling wholesale prices.
Speaking on his BBC 5 Live podcast yesterday, Martin explained how the price cap will affect consumers and what help is available to hard-up households.
He explained that the price cap decrease is “irrelevant” because households will only be paying the EPG.
Martin warned people will be paying 20% more.
He said he is “hopeful” that the EPG will not go up in April, he says there is a “better than 50% chance”.
Following a listener’s question, the consumer expert explained that the EPG rates for energy have not been revealed yet.
Most read in Money
The unit rate and the standing charges have not been announced as yet, only the bill for a typical household – although the more you use the more you pay.
For more information on what the price cap drop means for you see our story.
What help is available?
Martin also explained that those expecting the Alternative Fuel payment should have received it last month.
A listener who is still awaiting their £200 cash asked what the best course of action was to get the help.
Martin said: “For those people who have electricity and then their central heating is run on an alternative fuel such as LPG or heating oil, a £200 payment should be paid through the electricity provider.
“For those who are totally off-grid and have this, then you have to apply for the £200 payment.”
Those who get the payment automatically should have got it back in February and Martin urged those who have not had it yet to get in touch with their electricity supplier.
People on a direct debit should have had the cash into their account and those paying by standard credit should have had £200 added to their energy account.
Customers on prepayment meters should have had a voucher for the money by text, email or post.
Martin also explained how those living in park homes, care homes and living off-grid can now apply for the £400 energy rebate.
Around 900,000 households can apply, including people who live in houseboats or have a communal electricity supply.
The government’s online portal is now open.
Martin was asked if people who are on an alternative fuel and don’t have a direct relationship with an electricity supplier could apply for both of the funds – totalling £600 in help.
This would need to be done separately using the two different online portals.
Meanwhile, part of Martin’s MoneySavingExpert newsletter this week pointed out other help available in the form of hardship grants.
These grants are dished out by your energy supplier and there are a few different ones available.
For example, British Gas is offering £1,500 in support to customers in need through the British Gas Energy Trust.
The EDF fund can help customers who are in debt or facing financial difficulties.
Customers could get up to £750 in grants from Scottish Power to help with their energy bills.
Customers of both E.ON and E.ON Next can apply for cash grants to help with their energy costs.
For the full list of grants being offered and exactly what’s available see our roundup.
What other help can I get if I’m struggling?
Millions of households started receiving a £400 energy bill discount from October 1.
Households will have already received a £66 and £67 payments every month.
There will also be a payment worth £67 in March.
Between November 2022 and March 2023, a £300 one-off “Pensioner Cost of Living Payment” is being paid out to eight million households.
It is being given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.
Millions of households have also started to get the £150 Warm Home Discount between December 2022 and March 2023.
Meanwhile, the government is pumping a further £842million into the HSF after March 31 which councils are giving out.
It means that further support will be available to families under the scheme again until 2024.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
