Ofgem announced on Friday (August 26) that the energy price cap will rise to £3,539, resulting in an 80 per cent rise in bill costs.
It means around 24 million households in England, Scotland, and Wales on default energy tariffs will see their bills rise dramatically from October 31. The new energy price cap will remain in place until December 31, where it will be expected to rise once again.
The new price cap is defeating news for many vulnerable and struggling households who are already finding difficulty dealing with the financial hardships of the worsening cost of living crisis. The rising costs come amid record-high global gas prices which have mainly been attributed to the Russian invasion of Ukraine.
Read more: BREAKING: Energy price cap will rise to £3,549 in October, Ofgem announces
Many households across the UK will likely be concerned about whether they will be able to afford the new energy bill costs. Fortunately, there is some help available via government and charity grants.
However, some have warned that the current help available is still not enough for many families. Ofgem chief executive Jonathan Brearley said: "The government support package is delivering help right now, but it's clear the new Prime Minister will need to act further to tackle the impact of the price rises that are coming in October and next year."
Meanwhile, chancellor Nadhim Zahawi acknowledged that the energy price cap will cause "stress and anxiety" for many people, but added that the government was working to develop more options to support households. We have compiled all the ways you can currently receive financial help towards paying for your energy bills.
£400 energy discount
The government plans to provide every household in the UK with a £400 discount on their electric bill. The Energy Bills Support scheme will be automatically paid through six instalments
The discount will begin to be applied from October 2022. A payment of £66 will be applied in October and November while £67 will be applied in December, January, February and March.
Regardless of how you pay often you pay your energy bill, the discount will be given on a monthly basis and you do not need to apply.
Get money back from council tax
A £150 rebate will be given back from the council to help pay your energy bill. To be eligible for the rebate, you must pay council tax and live in a home that is in council tax bands A to D.
Only one person per household will receive the rebate. You'll also receive the rebate even if you get a Council Tax Reduction, get the Disabled Band Reduction discount or are subject to immigration control and your residence permit states "no recourse to public funds".
The rebate will also have no effect on your benefits. Your local council should contact you to discuss the rebate - if you don't hear from them, contact them to check if you're eligible for a claim.
Warm Home discount scheme
You could get £150 off your electricity bill or £150 added to your prepayment meter. The scheme will be applied automatically so you don't need to apply - the DWP should send a letter regarding the discount later on in the year. Check eligibility for the scheme here.
Fuel voucher
A fuel voucher can help pay for energy bills and you can receive it if you either use a prepayment meter or don't use gas or electricity for your heating.
The voucher can be used at PayPoint shops, a local Post Office or a shop signed up to Payzone. In order to use the voucher, you'll need to take the code and instructions that came with as well as some form of ID such as a passport.
The voucher must be used within three months of receiving it. To find out if you are eligible for a fuel voucher, contact your local council. Failing that you can contact Citizens Advice for help from an adviser.
Winter Fuel Payment
This annual one-off payment can help pay for heating during the winter period. You are eligible for the payment if you were born on or before September 25, 1956.
This year, those eligible will receive an extra £300 on top of their usual Winter Fuel Payment. While you should receive the payment automatically upon reaching pension age, you do have to apply for it sometimes by contacting the Winter Fuel Payment Centre.
Cold Weather Payments
These one-off payments are intended to help pay for extra heating when the temperature becomes especially cold. You'll receive the payment every time the temperature drops at a specific rate for a set period of time. People will be eligible for a Cold Weather Payment if they get any of: pension credit, income support, income-based jobseekers allowance, income-based employment and support allowance, universal credit or support for mortgage interest.
Energy debt grants
If you're in debt to your energy supplier, you may be able to receive a grant to help pay it off. These are the following grants currently available:
- British Gas Energy Support Fund
- Scottish Power Hardship Fund
- Ovo Energy Fund
- E.ON Energy Fund
- EDF Energy Customer Support Fund
- Bulb Energy Fund
- Octopus 'Octo Assist Fund'
If you're unable to get a fund from your supplier, you may still be able to receive a grant from the British Gas Energy Trust which is available to anyone, even people who aren't British Gas customers.
Read next:
Brits urged to make simple five-minute home check to save thousands on energy bills
DWP warning to everyone who is eligible for a cost of living payment
Utility Warehouse customers can get this fixed tariff ahead of October energy price cap
Thousands of homeowners who paid doubled ground rent to receive refund
People urged to claim £150 grant 'as soon as possible' as deadline approaches
