All the Energy Bill and Cost of Living Help Available This Winter, as British Gas Brings Back £1,500 Grants
Energy bills are set to fall for millions of homes starting from this weekend. However, despite this decrease, the overall cost of living remains high. Thankfully, there are several help schemes available from both the government and energy companies that offer cash and vouchers of up to £1,500 per year.
Starting from 1 October, the Ofgem price cap will lower the average household energy bill to £1,923 per year, down from the current £2,074. This price reduction applies to more than 90% of UK households that are on variable-rate energy deals and pay by direct debit.
Despite this price reduction, many British citizens are still in need of additional assistance due to the high cost of living and energy bills which average around £2,000 per year. Here is a comprehensive list of cost of living and energy bill assistance available during autumn, winter, and spring.
Energy Firm Support Grants
During the coldest months, many energy companies offer support grants to customers who are struggling to pay their bills. British Gas is one of these companies and will begin accepting applications for their Energy Support Fund on 2 October. They provide grants of up to £1,500 to eligible British Gas and Scottish Gas energy customers who are experiencing financial hardship and have sought energy advice.
Since 2021, more than 21,000 grants have been awarded, with over a third of recipients receiving disability benefits. Approximately a third of recipients are single parents, and another third have children under the age of five. Other energy firms such as E.On Next, EDF, Octopus Energy, and Shell also offered similar grants last winter.
The Future of Energy Bills
The current Ofgem price cap of £1,923 will remain in effect from 1 October until 31 December. Starting from 1 January, Ofgem will reset the price cap, and it is predicted to rise to £1,996 due to increases in wholesale energy prices.
Cost of Living Payment for Pensioners
Pensioners who receive winter fuel payments are also eligible for a pensioner cost of living payment ranging from £150 to £300. The purpose of this payment is to assist with energy bills, which tend to be higher for the elderly as they require warmer homes and potentially use plug-in medical devices. Winter fuel payments can amount to up to £600 and are given to households that include someone born before 26 September 1956. Eligible claimants should receive the pensioner cost of living payment automatically.
Warm Home Discount
The Warm Home Discount is a £150 payment that goes towards the cost of energy. It is distributed to two groups: those who receive the Guarantee Credit element of Pension Credit and those on certain means-tested benefits. Households with standard meters receive the £150 as a rebate on their energy bills, while those with pre-payment meters receive a voucher. Payments will be made between October 2023 and March 2024.
Cash or Vouchers from the Household Support Fund
Households facing financial difficulties can apply for cash and vouchers from the Household Support Fund. This fund consists of government funds distributed by local councils to residents in their respective regions. The fund received an additional £842 million in April 2023 and will continue until April 2024.
Each council decides how to allocate the money, whether it be through cash or vouchers. Some local authorities have provided several hundred pounds per home in assistance. Although anyone can apply, eligibility rules may apply, such as having a low income.
Cold Weather Payment
Eligible households receive £25 per week when the temperature at their local weather station remains at or below zero degrees Celsius for seven consecutive days. The Cold Weather Payment scheme runs from November to March. Households on Pension Credit, Income Support, income-based Jobseeker’s Allowance, income-related Employment and Support Allowance, Universal Credit, and Support for Mortgage Interest are eligible for this payment. They do not need to apply as the payment will be sent automatically by the Department for Work and Pensions.
Could You Get a Cheaper Energy Deal?
Fixed-rate tariffs are an alternative to expensive price-capped energy deals. Although energy companies stopped offering them to new customers after prices began increasing in October 2021, most companies are now selling fixed-rate tariffs exclusively to existing customers. Consumers considering fixed-rate energy tariffs should thoroughly compare the unit rates and standing charge of their current variable deal with those of the fixed tariff. Most fixed-rate tariffs are priced at or above the current price cap level, resulting in minimal savings. However, if your energy company offers a good fixed rate, it may be worth considering.
Analysts predict that energy bills will remain between £1,800 and £2,000 per year for most homes throughout 2024.
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