Households all across the UK are bracing for their energy bills to skyrocket in October among predictions that they could reach as high as £5,300.
Regulator Ofgem will soon announce the energy price cap, adding a new wave of financial pressure on households already struggling with the cost of living crisis sweeping the UK. It comes after the wholesale market price of gas and electricity has been steadily increasing, in most part due to Russia's invasion of Ukraine.
In response to the rising energy prices, Tory leadership candidate Rishi Sunak pledged to save all households around £200 by cutting VAT. However, vulnerable households are still likely to struggle with paying their energy bills regardless.
Read more: Warning energy bill price cap could now reach £5,300 next year
Despite this, there are still a variety of options available to help households pay their bills in the face of rising costs. Citizens Advice has broken down all the different schemes and grants currently available to help you save money on your energy bills over the coming months.
£400 energy discount
The government will provide every household in the UK with a £400 discount on their electric bill via the Energy Bills Support Scheme. The discount will be applied automatically so you don't need to apply.
The discount will be applied through six instalments starting 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.
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 eligable 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 interes.
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.
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