As the cost of living crisis continues, people across Britain are struggling to meet their financial obligations. But fortunately, there's support available for those who need a helping hand.
The Department for Work and Pensions (DWP) has announced anyone who is claiming one of the nine benefits available for those with a disability are set to get a lump sum to help. The initiative came into force on Tuesday, June 20, reports LancsLive.
This is also in conjunction with the separate £301 cost of living payment that was paid to eight million households earlier this year. However, a recent Financial Conduct Authority study has put the total number of Britons struggling to meet their financial obligations as high as 10 million.
The Independent reports the cost of goods in supermarkets and in the high street continues to creep up, stretching people's purses and meaning they are unable to pay their bills. Office for National Statistics (ONS) data shows that food prices have increased at their fastest rate for almost 45 years, for the year to April, with around 44 percent spending less on groceries and essentials.
In addition, 50 percent of shoppers are buying fewer items and 67 percent have noticed an increase in their cost of living within the past month. A shocking 97 percent have also said they've been impacted by the rising cost of groceries.
As these costs continue to rise and people are having to make decisions on their finances, some government support has been announced. This includes the additional £150 for those on disability benefits, as well as other schemes available more widely.
Extra support
Millions of households will receive a further cost of living support from the government if they are on low incomes, which could be worth up to £1,350 (including those already paid). Eight million means-tested benefits claimants will receive a £900 instalment from this Spring, going directly into bank accounts.
As well as the disability benefit add-on, over eight million pensioners could also see a payment of £300 into their accounts later this year or early next year. This is amongst the second and third cost of living payment, with £300 and £299 paid respectively in 2023 and 2024.
In terms of benefits more generally, they will be going out as usual, with no bank holidays to confuse delivery dates.
Remaining payment window dates:
- £300 second cost of living payment to be paid in autumn 2023
- £300 pensioner payment to be paid in winter 2023/24
- £299 third cost of living payment to be paid during spring 2024
Energy Price Guarantee
The Energy Price Guarantee, which capped the price of electricity and gas bills, was particularly prevalent in the winter months. Now, we're facing hotter temperatures, we're less likely to turn our central heating on, but it's still good to know where we stand on bills.
The price guarantee was extended until June, but as it has now expired, consumers will be paying the Energy Price Cap under Ofgem. They have announced that this will be £2,074 from July, which is a huge fall from the £3,280 that it was set at earlier this year.
According to Ofgem, the level is based on typical use of an average household on their supplier's standard default tariff. They have reiterated that it is a cap on the energy unit price and not on total bills, meaning the decrease affects wholesale prices before it is supplied to households.
Cornwall Insight predicts that July's decrease will be followed by another drop in October, where the average bill is predicted to be £1,976 annually. However, this is then set to rise in the following January, to £2,045 and Cornwall does not expect it will return to pre-pandemic levels before the end of the decade, with other geopolitical incidents, such as the war in Ukraine, having a detrimental impact.
