The government has announced new financial support for households after news that the energy price cap is expected to increase yet again in October 2022.
Energy Bills Grant All UK households will receive a £400 payment towards their energy bills – helping an estimated 28 million households pay their bills. Tenants on an electricity meter will be paid over six months from September, with the money applied to the meter or as a voucher. Direct debit and credit customers will have the money credited to their account.
Cost of Living Payment for those on means tested benefits Low income households most affected by the rising cost of living – including those on Universal Credit, Tax Credits, Pension Credit, income support, jobseekers, and Employment and Support Allowance – will get a new one-off payment of £650. The payment will be made in two lump sums – the first from July and the second in the autumn. It will also be tax free, and won’t count towards the benefit cap.
Pensioner and/or Disability Cost of Living Payments If you’re in a pensioner households eligible for the Winter Fuel Payment, you’ll get an additional payment of £300, paid by direct debit for most. Eligible households will get the one-off Pensioner Cost of Living Payment as a top-up to their annual Winter Fuel Payment of £200-£300 on average, in November/December.
If you’re on disability benefits, you will also get paid directly a one-off sum of £150, to help support the additional costs you may face, such as “specialist equipment, specialist food, and increased transport costs”. Claimants must be already receive or have started an “eventually successful claim” for benefits as of 25 May 2022 to be eligible.
Council Tax Rebate Chancellor Rishi Sunak revealed that around 80% of households in England – those in council tax bands A-D – will get £150 back on their council bills. This Council Tax rebate will not need to be repaid.
Local authorities will use the bank account details they hold for you if you pay council tax by debit card to credit eligible accounts with a one-off payment of £150 from April 2022. If you don’t pay via direct debit, their council will be able to process their claims from April.
Warm Home Discount Scheme You may be eligible to get up to £150 off your electricity bill during the 2022-2023 winter season under the Warm Home Discount Scheme. This would not be a direct payment, but rather a one-off discount on your bill between October and March. For you to be eligible, you’ll need to qualify in one of two ways. The first way is with the “Guarantee Credit element of Pension Credit”. You should receive a letter explaining how to get the discount if you’re eligible.
If you’re on a low income, you’ll need to meet your energy supplier’s criteria instead. Even if you have a pre-pay or pay-as-you-go meter, you could still benefit. You would simply receive a voucher if you’re eligible. You should check if your energy supplier is part of the scheme and then check how to apply directly.
Grants from Energy Trusts If you find yourself in debt for your energy bills, you may be able to find financial support from charitable trusts, to help you pay it off.
While you should check if there’s a relevant trust through your current supplier, British Gas Energy Trust offers grants even to those who aren’t British Gas customers. Most trusts would need you to share detailed information about your financial situation, and demonstrate that you have received debt advice before you apply.
Cold Weather Payment You could benefit from a Cold Weather Payment of £25 per day over a 7-day period. this payment depends on two criteria. It will apply if the average temperature where you live is recorded as zero degrees celsius or below over those days, between 1 November and 31 March. You will need to receive the below to be eligible:
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Universal Credit Support for Mortgage Interest
If you’re eligible, you won’t need to apply, but will automatically receive these payments.
Winter Fuel Payment If you were born on or before 26 September 1955, you could receive a payment of £100 to £300 for winter 2022-2023 to help pay your heating bills with a tax-free Winter Fuel Payment. If you fit this age bracket, and also get the State Pension or another social security benefit that isn’t Housing Benefit, Council Tax Reduction, Child Benefit or Universal Credit, this payment will be made automatically. If you don’t get either of those benefits but still meet the age criteria, you will need to make a claim. Once you’ve received your first payment, you will not need to reapply the following year, unless you defer you pension or move to Switzerland or an EEA country.
Household Support Fund The government has also funnelled £1.5 billion into its Household Support Fund since October 2021, to help vulnerable households across the UK with essential costs. The funds will be shared with local councils, which can use it to share “small grants to meet daily needs such as food, clothing, and utilities” and will be available until March 2023. The grants will be available over the winter and, if you wish claim any additional support, you should contact your local council to understand how you can access it.
If you are a tenant of ours at Lets Rent Southampton or not and are worried or concerned about how this may effect you please contact the team on 02380 434448.
