A bid to force ministers to speed up efforts to explain the energy support for households after April has been rejected in the Commons. New Chancellor Jeremy Hunt announced on Monday he was scaling back the energy support package, with the two-year price freeze now only running for six months.
Mr Hunt said the UK Government will launch a review on how to target support to those most in need after April in a bid to save taxpayers' cash. The SNP sought to amend the Energy Prices Bill, which puts in law the support package and was fast-tracked through the Commons, to require ministers to set out to Parliament the full details on the different scenarios from April within 28 days of it receiving royal assent.
SNP energy spokesman Alan Brown cited previous comments from Prime Minister Liz Truss as he warned Business Secretary Jacob Rees-Mogg the average household energy bill will rise from an average of £2,500 per year to £6,000 per year from April if no further support arrives.
He said: "That is unsustainable and that is why we moved new clause 18, as it's a real imperative that the Government comes back with a support package with some clear analysis that shows they understand the gravity of the situation."
The SNP's amendment was rejected by 61 votes to 304, majority 243.
The Bill cleared all stages in the Commons on Monday and will undergo further scrutiny in the Lords at a later date.
What does the Chancellor’s change mean for energy bills?
Under the previously announced energy price guarantee, the average household would pay around £2,500 annually for their energy bill, although as the cost was limited per unit and not per bill, some households would pay more, depending on their energy use.
The guarantee was due to last for two years, but Chancellor Jeremy Hunt said that, while it will continue until next April, a review will be launched to consider how to support households and businesses with energy bills after April 2023.
The review will design a new approach aiming to cost taxpayers significantly less than planned, while ensuring enough support for those in need.
Any support for businesses will be targeted to those most affected and the new approach will better incentivise energy efficiency.
Households are already receiving both widespread and targeted support to help with energy costs.
£400 Energy Bills Support Scheme
The £400 energy rebate will remain unchanged and set to run for the planned six months providing a monthly discount off domestic electricity bills of £66 in October and November and £67 from December until March.
Additional winter energy bill support
There are five one-off payments due between now and March specifically aimed at helping with the additional costs of winter - separate from the UK Government’s £400 energy rebate and second cost of living payment of £324.
The payments are for those on a low-income or certain benefits and worth more than £1,000. All but one of the lump sums will go directly to the claimant - the £150 Warm Home Discount goes to your energy supplier and is deducted from your electricity bill.
There are also two devolved payments, only available to people living in Scotland:
- Winter Fuel Payment - up to £600
- Warm Home Discount - £150
- Child Winter Heating Assistance (Scotland only) - £214
- Winter Heating Payment (Scotland only) - £50
- Cold Weather Payments (not Scotland) - £25
Most of these payments will be made automatically, the only one you may need to apply for is the £150 Warm Home Discount Scheme, due to the eligibility changes this year - find out more here.
Winter Fuel Payment - up to £600
This year, a one-off pensioner cost of living payment (worth between £150 and £300) is being added to the annual Winter Fuel Payments, which are worth up to £300 depending on your household circumstances.
In total, these combined payments are worth up to £600 in heating bill help and will start to land in bank accounts from mid-November. The Department for Work and Pensions (DWP) has said that these should arrive no later than January 13, 2023.
It is not taxable and does not affect eligibility for other benefits. The money is paid per household.
To be eligible for this year's Winter Fuel Payment, you must have been born on or before September 25, 1956 and lived in the UK for at least one day during the week of 19 to 25 September 2022 - this is called the ‘qualifying week’.
We have a full list of how much to expect depending on your circumstances here.
You can find more information about the Winter Fuel Payment on GOV.UK here.
Warm Home Discount - £150
The scheme officially opens in November, but some suppliers are taking applications now. The money is not paid to you - it’s a one-off discount on your electricity bill made directly to your supplier, between October 2022 and March 2023.
The list of energy suppliers participating in the winter 2022/23 Warm Home Discount scheme has not been updated on GOV.UK yet, but the £150 discount is normally automatically made to those on a low income or qualifying benefit.
If you live in Scotland, you qualify if you either:
- get the Guarantee Credit element of Pension Credit - known as the ‘core group’
- are on a low income and meet your energy supplier’s criteria for the scheme - known as the ‘broader group’
We recently looked at the rule changes for the scheme which you can read here and there is a dedicated page to the Warm Home Discount section on each energy suppliers website on GOV.UK here.
Child Winter Heating Assistance (Scotland only) - £214
Child Winter Heating Assistance is an annual payment of £214 for youngsters in Scotland on disability benefits to help with increased costs over the colder months.
The money is paid once a year and the Scottish Government has confirmed that the payment for winter 2022/23 will be £214.10 per eligible child or young person.
Children and young people in Scotland can get the heating assistance payment if they are under 19 years old and in receipt of one of the qualifying benefits between September 19 and September 25.
There’s no specific payment date, but it will be made automatically from the end of November.
Qualifying benefits:
- Child Disability Payment - highest rate of the care component
- Disability Living Allowance for children - highest rate of the care component
- Personal Independence Payment (PIP) - enhanced daily living component
- Adult Disability Payment - enhanced rate of the daily living component
Find out more about Child Winter Heating Assistance here.
Winter Heating Payment (Scotland only) - £50
The £50 Winter Heating Payment will replace Cold Weather Payments in Scotland and is a one-off lump sum due to be paid in February, 2023 to help with energy bills.
Households on these benefits will qualify for the payment:
- Universal Credit
- Pension Credit
- Income Support
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Support for Mortgage Interest
Find out more about Winter Heating Payment here.
Cold Weather Payments (not Scotland) - £25
These are being replaced in Scotland by the one-off £50 Winter Heating Payment due to be paid in February, 2023.
This is a £25 payment from DWP for those on a low-income or certain qualifying benefits, triggered when temperatures are recorded or forecast at below zero degrees Celsius for seven days in-a-row in a claimant’s local area between November 1 and March 31.
You may be eligible for Cold Weather Payments if you’re getting:
- Pension Credit
- Income Support
- Income-based Jobseeker’s Allowance
- Income-related Employment and Support Allowance
- Universal Credit
- Support for Mortgage Interest
You can read the full details for eligibility for each of these on the GOV.UK website here.
To keep up to date with the latest cost of living news, join our Money Saving Scotland Facebook group here or subscribe to our newsletter which goes out three times each week - sign up here.
READ NEXT
- New Energy Price Guarantee update for people currently on a variable tariff or prepayment meter
New Warm Home Discount Scheme rules - check if you are due £150 off energy bills this winter
£400 energy rebate to be given to private tenants and park home residents by end of the year
How to ask your energy provider for help if you struggle to pay higher heating bills this winter
Young people on PIP and DLA to receive £214 payment this winter
