MILLIONS are expecting an extra £400 this winter to help out with the rising cost of living.
But many aren’t sure what to expect now that Prime Minster Liz Truss has set out her new Energy Price Guarantee.
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Ms Truss froze energy bills at £2,500 last week for two years under her cost of living support package.
It means households will save £1,000 after the original price cap was set for £3,549.
However, the cap is just on what firms can charge customers. Bills could still be higher, based on energy usage.
Many are confused about whether they’ll still get the £400 booster payment within the next few months as promised, or whether the new price cap affects it.
The answer is no, the price cap doesn’t affect it, and you’ll still get the £400 starting from October.
Nearly 30 million households are eligible for the discount which is being administered by energy firms.
It’s up to individual energy suppliers to determine how their customers are paid.
Bulb, E.ON, E.ON Next, Scottish Power, Shell Energy, Octopus Energy, Utilita and Utility Warehouse will apply the £400 rebate as a discount off bills.
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It will be paid in six instalments between October and March, with the first payment worth £66.
You can read here about plans so far for how individual energy suppliers will pay the sum.
What other grants are available?
There are plenty of other grants available to help with the cost of living, some of which we’ll list below.
£150 disability cost of living payment
Former Chancellor Rishi Sunak announced in May that six million disabled Brits will receive £150 from 20 September.
The money is to help cover the costs of running energy intensive equipment at home.
For many disability benefit recipients who receive means tested benefits, the £150 will come on top of the £650 they will receive separately.
The automatic payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
£150 Council Tax rebate
In February, the government announced it would be offering a council tax rebate to combat rising energy bills.
The £150 payment is for people whose homes fall under council tax bands A-D and local councils are responsible for deciding who is eligible and making payments.
The government set a deadline of September 30 for all payments to be made, and payments started back in April.
Many people who pay their council tax bill by direct debit have already had the cash paid directly into their bank accounts.
But thousands who don’t must apply for the £150 from their local authority.
You can find your local authority by using the government’s handy tool.
Some households are yet to receive payments, but councils have given updates on when residents in those areas should expect to receive them.
£150 from £144 million discretionary fund
Thousands of people who are not eligible for a council tax rebate could still get up to £150 free cash to help with the rising cost of living.
A separate £144 million fund has also been launched, which local councils can dish out to vulnerable and low income households in their area.
An estimated 4.7million households are in council tax bands E-H, so will not get the rebate automatically, but could still qualify for a discretionary payment.
Local authorities are giving out the cash in different ways and the amount you get and who qualifies can vary depending on where you live.
You can find your local council on the government’s website.
£300 Pensioner cost of living payment
In November or December this year, a £300 one-off Pensioner cost of living payment will be dished 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.
The extra £300 will be paid directly and is on top of this support which means some eligible households will see their payments double this winter.
You can check out if you are eligible for the Winter Fuel payment in this handy explainer.
£200 Household Support Fund
The Household Support Fund programme aims to help those struggling with their finances and can’t cover the essentials.
The Scheme is part of the Government’s Household Support Fund which was first introduced in October 2021.
It has recently been extended until September 30, 2022 as millions of people face the ongoing cost of living crisis.
In May of this year Chancellor Rishi Sunak pumped an extra £500million into the scheme. In total, £1.5 billion has been made available.
The money is being dispersed between local councils to help those who need it locally – some councils are giving
Each council determines how to use its budget to help local residents, with many previously dishing out supermarket and fuel vouchers or one-off cash payments.
Not all residents can receive the support due to eligibility requirements, so it’s best to check your local council’s website.
