The typical household energy bill will be capped at £2,500 a year from October as part of new cost of living help announced by Liz Truss.
The new Prime Minister confirmed the Ofgem price cap will be replaced with an “Energy Price Guarantee” for two years.
The “Energy Price Guarantee” will set a limit on how much suppliers can charge customers per unit of gas and electricity.
But the £2,500 figure isn’t a hard cap on how much you’ll pay though - it is a representation of someone with typical energy use.
Are you still worried about energy bills? Let us know: mirror.money.saving@mirror.co.uk
The new unit rates will just be cheaper than it would otherwise have been, if the price cap had risen to £3,549 in October.
Brits will still be paying more for energy than what they are right now.
If you take into account the £400 discount, the “Energy Price Guarantee” effectively becomes £2,100 - but the current price cap is set at £1,971.
Household energy use is also typically higher during the winter months.
Following the latest energy announcement, the Government has also confirmed that the cost of living payments will still be sent out as planned to eligible households.
What payments are still due to be made?
£650 cost of living payment
There is a £650 cost of living payment being awarded to around eight million households who claim means-tested benefits.
This includes those who claim:
- Universal Credit
- Income-based Jobseeker’s Allowance (JSA)
- Income-related Employment and Support Allowance (ESA)
- Income Support
- Pension Credit
- Child Tax Credit
- Working Tax Credit
The first half of this payment - worth £324 - has now been sent out to most households, with a second payment to follow later this year.
You must have received a payment - or later found to have been eligible for a payment - for one of these benefits between April 26 and May 25, 2022 to have been eligible for the first half.
You might still be eligible if you were later found to be eligible for a benefit within this qualifying period.
If your Universal Credit was reduced to zero between this period, you won't be entitled to the first half of cost of living payment.
Those who claim Universal Credit, Income-based JSA, Income-related ESA, Income Support and Pension Credit will receive the second half of the payment - worth £326 - in the autumn.
Those on Tax Credits will get the same amount in the winter.
The Government has yet to confirm an exact date for the second half of this cost of living payment.
£150 disability cost of living payment
Those who claim certain disability benefits will get an extra £150 from September 20.
The benefits that will qualify you for this payment are:
- Attendance Allowance
- Constant Attendance Allowance
- Disability Living Allowance for adults
- Disability Living Allowance for children
- Personal Independence Payment
- Adult Disability Payment (in Scotland)
- Child Disability Payment (in Scotland)
- Armed Forces Independence Payment
- War Pension Mobility Supplement
You must have received a payment - or later found to be eligible - for one of these qualifying benefits by May 25, 2022 to get the payment.
£300 pensioner cost of living payment
Pensioners who are in receipt of Winter Fuel Payments will get an extra £300 as part of the cost of living package.
This money is expected to be handed out in November and December.
Winter Fuel Payments are worth between £100 and £300 normally - but it does depend on your circumstances.
How much you get also depends on your age, who you live with and the benefits you get.
The £300 cost of living cash is on top of your Winter Fuel Payment.
Age UK says those who were born on or before September 25, 1956, should qualify for a Winter Fuel Payment this year.
As well being the right age, you need to have been living in the UK for at least one day in the qualifying week.
The qualifying week is September 19 to 25, 2022.
