Earlier this week, Chancellor of the Exchequer Rishi Sunak unveiled a £15 billion package of financial support to help millions of households across Scotland and the UK with the worsening cost of living crisis.
It was announced on Monday by energy regulator Ofgem that the energy price cap is predicted to rise by £800 starting in October.
In response, the UK Government revealed plans to help those set to be most impacted by soaring bills.
READ MORE — DWP Universal Credit claimants could be due extra £156 a week tax-free
In addition to every household in the UK getting £400 off their energy bill in October, millions of the most vulnerable households will receive £1,200 of one-off support in total this year.
As reported by the Daily Record, here is a summary of all of the key information you need to be aware of, including eligibility criteria for each aspect of the relief package and when they will be paid.
£400 discount off energy bills
Originally, the UK Government announced a £200 'loan-not-loan' to help households with soaring energy bills that would eventually needed to be paid back.
However, this has now been converted into a grant, meaning it does not need to be paid back, and the value has been doubled to £400.
Starting October, energy providers will roll out this grant over a six month period to households with a domestic electricity meter.
Customers who pay via direct debit or credit will get the money credited to their account, while those who have pre-payment meters will see the funs applied to their meter or paid through a voucher.
This grant follows the £150 Council Tax rebate for households in bands A, B, C, or D (and with a reduction in Scotland) that was announced in February.
£650 one-off payment for people on means-tested benefits
This will be paid in two separate instalments to households who are on means-tested benefits.
Those who claim the following benefits will receive the money:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
The Department for Work and Pensions (DWP) will deliver the first sum in July, whilst the second will be transferred in the autumn.
Payments from HM Revenue and Customs (HMRC) for people on Tax Credits only will come shortly after each to make sure payments are not duplicated.
Claimants will need to receiving one of the benefits mentioned — or have started a claim which is later successful, as of May 25 — in order to qualify for the first of the instalments.
More detailed guidance will be provided by the DWP and HMRC, and further information regarding the second instalment will be shared at a later date.
The money will be tax-free, and will not be counted towards the benefits cap.
Additionally, it will not affects any existing benefits.
£150 one-off payment for people on disability benefits
This will be paid in September to claimants who are on any of the following disability benefits:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Adult Disability Payment (Scotland only)
- Child Disability Payment (Scotland only)
- Armed Forces Independence Payment
- Constant Attendance Allowance
- War Pension Mobility Supplement
In order to qualify, claimants must be receiving — or have begun a claim that is later successful — any of these benefits as of May 25.
Claimants who get means-tested disability benefits will receive the £150 as well as the £650 they will get separately.
This money will be tax-free, and will not be counted towards the benefit cap.
Additionally, it will not affect any existing benefits.
£300 one-off payment for people of State Pension age
This will be sent to pensioner households throughout Scotland and the UK who get the Winter Fuel Payment.
It will be paid on top of any other one-off support a pensioner household receives such as Pension Credit or disability benefits.
The Winter Fuel Payment — as well as the extra Pensioner Cost of Living Payment — is tax-free and does not impact eligibility for other benefits.
All eligible households will receive the one-off Pensioner Cost of Living Payment in addition to their yearly Winter Fuel Payment in November or December.
The majority of households will receive the funds through direct debit.
Only those who are over the State Pension age between 9-25 September 2022 will be eligible to receive the money.
In certain situations, an pensioner may not qualify for the Winter Fuel Payment — found out more on GOV.UK here.
£500m increase and extension of Household Support Fund
The Household Support Fund helps those in most need with payments towards the rising cost of food, energy, and water bills.
The Barnett formula provides a share of this funding to the devolved administrations in Scotland, Wales, and Northern Ireland so they can decide how to provide support.
The UK Government will issue additional guidance to Local Authorities in England to ensure support is targeted towards those most in need of support, including those not eligible for the Cost of Living Payments set out on May 26, 2022.
The Household Support Fund is administered by local councils in England and further information will be available directly from them.
Eligibility will be determined by individual councils.
You can read detailed examples of how the additional support packages will affect different types of households on he GOV.UK website here.
