More cost of living payments are coming from the Government. The announcement was made by Chancellor Jeremy Hunt during his autumn statement this lunchtime.
The Government will introduce additional cost of living payments for the "most vulnerable" with £900 for those on benefits, £300 for pensioners and £150 for those on a disability benefit, Mr Hunt said. The payments are intended to ease the pain of rising energy bills for those on low incomes.
Average household energy bills will hit £3,000 next year, up from £2,500 this year. Unlike this year when £400 cost of living support was paid to all households, next year's cost of living payments will be more generous but will only be targeted at the least well off.
The Chancellor told MPs that "for the most vulnerable we will introduce additional cost of living payments next year, of £900 to households on means-tested benefits; £300 to pensioner households; and £150 for individuals on disability benefit.
"We will also provide an additional £1 billion of funding to enable a further 12-month extension to the Household Support Fund, helping local authorities to assist those who might otherwise fall through the cracks. And for those households who use alternative fuels such as heating oil and LPG to heat their homes, I am today doubling the amount of support from £100 to £200, which will be delivered as soon as possible this winter. Before the end of this year, we will also bring forward a new targeted approach to support businesses from next April."
Mr Hunt also said he had accepted a recommendation to increase the national living wage by 9.7%, making the hourly rate £10.42 from April 2023. He also announced that he would increase working age and disability benefits in line with inflation, with a rise of 10.1%, costing £11 billion.
The Chancellor said he will increase state pensions in line with inflation in April, announcing the "biggest ever cash increase in the state pension".
The Government will also continue the Energy Price Guarantee for a further 12 months at a higher level of £3,000 per year for the average household.
Jeremy Hunt told the Commons: "One of the biggest worries about families is energy bills, and I pay credit to my predecessor the right honourable member for Spelthorne and the former prime minister, the right honourable member for South West Norfolk, for their leadership in this area. This winter, we will stick with the plan to spend £55 billion to help households and businesses with their energy bills - one of the largest support plans in Europe.
"From April, we will continue the Energy Price Guarantee for a further 12 months at a higher level of £3000 per year for the average household. With prices forecast to remain elevated through next year, this will still mean an average of £500 support for every household."
