ENERGY bills are already at record high prices, but they’re due to rise even further in just a few months’ time.
To save households from crippling under the increased costs, the government is stepping in with four different schemes worth up to £800 to help with rocketing energy bills this winter.
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Energy bills are due to rise a record £693 in April.
That’s because last week it emerged that the energy price cap, in place to stop households from being ripped off on their bills, would escalate to £1,971 a year by the springtime.
On top of the imminent hikes, many have been struck by soaring food costs, as well as tax increases, and more.
It’s left some Brits having to make the stark choice between heating and eating as a result.
The rises are largely out of government control, especially as global demand is to blame for rising energy costs, as well as restrictions on imports from Russia and more.
But there are measures that can help the most hard-up survive through the toughest of months.
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Just as increases were announced, the government announced a package of support worth £9.1 billion.
There’s a new £200 rebate on energy bills coming into play that’ll be handed to customers by suppliers – but they’ll gradually have to pay back the cash in £40 instalments from 2023 over the next five years.
There’s also existing schemes that help households through the coldest months including one-off payments and discounts, plus discounts on tax too.
Here’s everything that is being offered:
Warm Home Discount – worth £150
The Warm Home Discount Scheme is a one-off payment that goes towards your heating costs.
It’s designed to bring down the costs of your bills with a direct amount that comes straight off your total – so you wont see the money as cold hard cash, but you will feel the benefit with a reduced energy bill in the harshest months.
It’s usually paid straight to your energy supplier who then apply the discount to your bills.
But if you have a pre-payment meter, you’ll be sent a voucher that you can use to top up your account.
The government announced this month that it would be expanding the Warm Home Discount scheme so more low income households will benefit.
It means there’s an extra tenner on offer in support, up from the £140 that has been offered in years past.
Households can claim £150 under the revised scheme but that doesn’t come into play until October, so it actually only affects next winter.
Three million households could be able to claim, but they must be in receipt of Pension Credit, Guarantee Credit, or some working age benefits to be eligible.
It’s split into two sections, which are currently known as the core group and the broader group.
The core group are people who get the guarantee element of pension credit – and they automatically get the payment every year.
The broader group is made up of low income households who have to apply for the support through their energy supplier.
If you’re in the core group you will have received a letter before Christmas confirming your receipt of the discount for this year’s scheme.
It ends on March 31.
If you’re in the wider group you’ll need to get in touch with your supplier, and apply to their scheme to get the discount before it ends for the year.
The scheme has already closed at several suppliers this year, but you still have the chance to apply for the cash at four:
- Bulb
- E.On
- E.On Next
- So Energy
Winter Fuel Payment – worth £200 – £300
One-off winter fuel payments from the government of between £100 and £300 are given to pensioners.
To qualify for the payout, you’ll need to have been born on or before September 26, 1955 – the date changes every year.
You must also have lived in the UK for at least one day during the “qualifying week”. For the payments this winter, it fell between September 20 and 26, 2021.
The money is tax-free and won’t affect any other benefits that you get, such as Universal Credit, but how much you get depends on your circumstances, like if you live alone or you get certain benefits.
It applies to all households with at least one member above state pension age, with £200 for those under 80, and £300 to those over 80.
But the payments are made automatically, usually between November and December – so you should have already got it this season.
If you’re entitled to the payout but didn’t receive the cash by January 14, 2022 then you should contact the helpline on 0800 7310160 from England, Scotland and Wales.
You have until March 31 to make a claim for the missed payment.
Energy Rebate – worth £200
Chancellor Rishi Sunak announced just last week that all energy customers will get a £200 discount on their energy bill from October.
It’s another one you’ll have to wait for and can’t cash-in on now, but it’ll be applied automatically so you won’t need to do anything to claim.
The government is hoping the help will spread the worst of this year’s energy price shock over time.
But they will need to be repaid in £40 instalments from April next year.
That’s in the hope that prices will have dropped by then as the repayment period follows over five years, from 2023.
Martin Lewis attempted to clear up “confusion” and “misunderstanding” around the scheme as he explained how it’s “not optional – you can’t choose not to get it.”
He confirmed that “you will then have your bill automatically – without choice – increased by £40 a year. That is how it will work.”
Council Tax Rebate – worth £150
This one won’t necessarily impact your energy bills directly, helping them come down, but it can mean you’re not dipping into other parts of your bills budget.
The government is planning to hand out a £150 tax refund for millions of households later in the year, which is a grant so won’t have to be repaid.
It’s due to be available to those in council tax bands A to D – as the government is aiming to help target those on lower and middle incomes.
15million households in total are in line to get the council tax refund.
If you don’t qualify though you can challenge your council tax band to see if you can avoid missing out on the support.
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