More help could be on the way to help low income families pay for their energy if recommendations are taken up by the Government.
Cheap social energy tariffs and discounted energy bills for households on benefits are two of the suggestions made by the Public Accounts Committee energy bills support report, which has criticised the Government's 'lack of urgency in addressing the energy market failures', which is says has led to high energy bills.
The committee has also asked for the Government's plans for ensuring energy affordability in winter 2023–24 within six months, along with a progress report on future plans for the domestic scheme, such as capping support to those that use very large volumes of energy and introducing discounts on bills for households on benefits.
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Although the Government has not yet confirmed it will act on any of the suggestions, plans in the pipeline could include:
- Cheap social tariffs for energy: Social tariffs are special cheap deals common for broadband and mobile phone customers, and are normally open to customers on low incomes or means-tested benefits. These could be implemented as as part of the Government's planned wider reform to the energy sector.
- Cheaper bills for homes on benefits: Another Government consideration is to discount energy bills for households on benefits,
- Bringing back competition to the energy market: Currently most providers are selling energy at roughly the same price.
Most homes are currently paying around £2,500 a year for energy. This is due to fall from July, but only to £2,074, and the lack of the £400 Energy Bills Support Scheme rebate this year will mean that most families will be paying about the same as they did ast winter.
Analysts at Cornwall Insight think the typical home will pay around £2,000 a year for gas and electricity until at least next March. And although the Public Accounts Committee suggestions have not yet been implemented, if at all, millions of homes are already in line for Government cost of living help this year.
Seven million people have already had the first instalment of this year's £900 cost of living payment in early May, and from June 20 until July 4, a further six million people getting certain disability benefits will get a £150 payment paid automatically.
Additional help confirmed so far this year is:
£600 for benefits claimants
Households on benefits such as Universal Credit will get a further £600 in two payments later this year and early next. A payment of £301 has already been made this year. That will be topped up by a second payment of £300 in the autumn and £299 in early 2024, though no exact dates have been announced yet.
To be eligible for the payment, you need to have been entitled to a payment for one of these benefits between certain dates, which will be released nearer the payment times:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit
Pensioners cost of living payment
Like last year, if you’re entitled to a Winter Fuel Payment for winter 2023 to 2024, you will get an extra £150 or £300 pensioner cost of living payment with your normal payment from November. The amount you get depends on when you were born and your circumstances during the qualifying dates.
According to the DWP, you can get a Winter Fuel Payment for winter 2023 to 2024 if you were born before 25 September 1957. Eligible people will be sent a letter in October or November saying how much Winter Fuel Payment they will get.
Cash or vouchers for hard-up families
Households struggling with the cost of living can apply for cash and vouchers from the Household Support Fund, a £2b pot of Government cash handed out by local councils to people in their region. Twelve local councils in the North East and Teesside have received a total of nearly £48m from the DWP, with the largest single recipient being Durham, which received £9,352,199.30.
Councils will decide how best to spend their allocation of the fund to support the most vulnerable households in their local area – helping them with the cost of essentials like groceries, toiletries, and warm clothes, as well as providing further support with energy bills.
Warm Home Discount
The Warm Home Discount is a £150 payment towards the cost of energy. The criteria for those who receive the cash changed last spring and those claiming disability benefits Personal Independence Payment (PIP) and Disability Living Allowance (DLA) were removed from the automatic eligibility list. The payment now goes to two groups: those who get the Guarantee Credit element of Pension Credit and those on certain means-tested benefits, who will get the money between October 2023 and March 2024.
Grants from energy firms
Some energy firms still have grants available to give to households struggling to pay their energy bills and you can even apply to one - British Gas - whether you're a customer or not.
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Whether your supplier offers support, who qualifies, and how much you'll get varies. Scottish Power, for example, requires people to be on certain benefits, while Utility Warehouse requires people to be in fuel poverty, or about to go into energy debt. Most suppliers require applicants to have spoken to a debt adviser such as StepChange before applying, complete an income and expenditure budgeting form, provide proof of income, give details of how arrears have built up, and detail how the grant will help them. Those deemed to have the greatest need are likely to be prioritised.
Here are the energy firms with help schemes still running:
