Cost of living and energy prices update
The new energy price cap was announced by the regulator Ofgem meaning that the typical household energy bill would increase from approximately £1971 to £3549 with effect from 1st October. This was much higher than the 42% rise that was predicted by Ofgem earlier in the year.
The price cap is a cap on the charge per unit of energy so the total bill will depend on the amount of gas and electric the householder uses.
However, at the time of writing the Government had announced that it will limit energy bill rises by capping a typical households energy bill at £2500 per annum until 2024. It is expected that more information will become available before this is introduced by 1st October.
As reported in the last newsletter, the Government has already introduced targeted support which it is expected will remain:
Energy Bill Support Scheme - £400 applied to energy bills as a discount over 6 months from October.
- For those paying by direct debit or on standard credit, the discount will be applied as £66 in October and November, and £67 every month between December and March 2023.
- Smart payment meters will see an automatic top up applied.
- For those with traditional pre-payment meters this will be by way of a voucher to be cashed in at a Post Office or other top-up centre.
Cost of Living Payment - low income households in receipt of a qualifying means tested benefit will receive a £650 payment. The first instalment of £326 was paid to most people between 14th and 31st July; another £324 will be paid in the autumn.
Pensioner Cost of Living Payment – households in receipt of the Winter Fuel Payment will automatically receive an additional £300. This is usually paid direct in November / December.
Disability Cost of Living Payment – people in receipt of qualifying disability benefits will receive a further £150 from 20th September. (Note, this is per person, not household)
Council Tax Rebate – a payment of £150 for properties in the Council Tax Bands A-D, to be paid by 30th September. Most households have received this automatically. Each Council has information on its website if households have not received the payment.
Households that are struggling with their energy bills should not ignore the problem and should contact their energy supplier as soon as possible. Depending on their circumstances they may be eligible for extra help such as debt repayment plans, payment breaks, emergency credit for prepayment meter customers, priority support or other financial assistance. Further help and support may be available from:
