HOUSEHOLDS across the country are set for a grim winter as Ofgem prepares to announce the next hike to the energy price cap.
It’s expected that energy bills will rise to £3,553 from October the first.
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However, millions of households across the country are also set to receive up to £1,474 in energy bill support over the next four months.
With payments worth between £150 and £324, those on the lowest incomes and facing financial hardship can get over a thousand pounds in support.
Millions of households on Universal Credit and legacy benefits should have already received the first half of the £650 cost of living payment.
These households were given £326 in July but those on tax credits will have to wait till the Autumn to receive their first share of cash help.
The energy bill support on offer was first announced by former chancellor and wannabe PM Rishi Sunak in May.
However, with energy bills predicted to hit £5,341 next spring, many are questioning if enough support is in place.
The energy price cap announcement tomorrow comes in the same week that Centrica boss Chris O’Shea committed to donating £12million of British Gas profits to help support its most vulnerable customers.
For now, we list the key energy bill announcements coming up, plus when households can expect to be paid further cash support.
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New energy price cap announced – August 26
On Friday, August 26, the energy regulator Ofgem will set out what the next energy price cap will be.
The energy price cap limits the maximum energy suppliers can charge customers for each unit of gas and electricity on the standard variable tariff.
But it does not protect customers from wholesale prices.
It’s not a cap on how much you can be charged for the energy that you use – so if you use more expect to pay more.
And those on prepayment meters will usually have a higher cap.
The new energy price cap set on this day will then come into force on October 1.
Cost of living payment for those on tax credits – from September
One million people receiving tax credits will receive the first half of the £650 cost of living payment this autumn.
The government is paying tax credit claimants later than those getting DWP benefits like Universal Credit to avoid paying anyone twice.
You must have been entitled, or later found to be entitled to tax credit payments of annual awards between April 26 and May 25 to get the cash.
The money will be paid in the same way you usually get your tax credits.
The second instalment for those on tax credits is due to be paid in the winter, although the government is yet to confirm a specific month or date.
The government has confirmed the exact date as to when payments will begin but they’re expected to complete by the end of autumn.
New Prime Minister announced – September 5
In 11 days time the next Prime Minister of the United Kingdom will be hurled into Number 10.
The new PM will assume their official duties on Tuesday, September 6 and it’s expected that more bill help will be on the way.
The two wannabe’s, former Chancellor Rishi Sunak and foreign secretary Liz Truss have both pledged to help those with their energy bills.
Rishi Sunak is promising more immediate help while Liz Truss is focussed on cutting taxes.
Education minister, Will Quince told Tom Swarbrick on his LBC radio show last night that the next Government will put in place a “further package of support measures” to deal with the cost-of-living crisis.
The minister said: “There is no question in my mind whatsoever, both listening to the two leadership candidates but also just looking at our economy, and also the challenges that people and businesses are facing up and down this country driven by Putin’s barbaric invasion and occupation of Ukraine, that the Government is going to act and put in place a further package of support measures.
“Now, we will have to wait a couple of weeks for a new prime minister to set out their agenda alongside a new chancellor, but both leadership contenders have been clear there will be a fiscal event and more help will be coming.”
Cost of living disability payment – September 20
Over six million people with disabilities are set to receive £150 from Tuesday, September 20.
This payment is to help those with disabilities pay for any energy intensive equipment they might have.
The payment will be made directly into their bank account and households won’t need to apply.
It won’t have any impact on existing benefit awards either.
You can get the cash if you claim one of the following:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
Warm Home Discount letters sent out – October
Millions of households are in line to get a £150 discount off their energy bills between December and March 2023.
You’ll be eligible for the automatic discount if you received any of the following benefits up to August 21 this year:
The Department for Work and Pensions, who’s overseeing the scheme, will send you letter in October to confirm if you’ll get the payment later on in the year.
New energy price cap comes into force – October 1
The new energy price cap will come into force and it’s forecast that bills will rise by £1,582 from £1,971 to £3,553 from October the first.
The forecast will come as a major blow to families already struggling during the cost of living crisis.
The energy regulator, Ofgem, will then change the energy price cap every three months and bills are predicted to rise even further into next year.
Cornwall Insight’s forecast estimates that a typical household’s energy bill will hit £4,649.72 in January and £5,341.08 from April.
Energy bills rebate payments begin – from October 1
From October the first, all households will start to receive a £400 energy bill discount.
The payment will be dished out by your energy supplier and will be split across six discounts between October and March next year.
Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.
We’ve listed how the leading energy suppliers plan to pay households the discount and are waiting on others to respond.
The way you’ll be paid will depend on how you pay for your energy.
If you’re on a credit meter the discount will come off your bills, but if you’re on a prepayment meter you’ll get a voucher.
Check with your supplier to confirm how you’ll receive the cash.
Pensioner cost of living payment – November
In November, a £300 one-off “Pensioner Cost of Living Payment” will be paid out to eight million households.
It will be given to those who already get the winter fuel payment – which is worth between £100 and £300 for those over state pension age.
You can check out if you are eligible for the winter fuel payment in our explainer.
Warm Home Discount payments begin – December
Payments for the £150 Warm Home Discount scheme will likely begin from December.
In previous years the cash was split across four payments – giving customers a £37 discount off their bills each month from December to March.
The way in which you’ll be paid will be confirmed by your energy due course.
