Hi folks,
A quick post about the increased energy costs i.e., the increase in energy bill by an average £693. as all you are aware Chancellor Rishi Sunak has now revealed new plans to help support households, who may be struggling with managing financially, because of the increased energy bills.
While costs are going up, he says that ‘we need to adjust to paying more for energy prices.
As a result, millions of households will receive energy bill discounts totalling £350 instead of the £693 recent price increase to try and reduce the impact of increase of energy bills.
Rishi Sunak has announced a repayable £200 discount on bills for homes in England, Wales, and Scotland from October.
There will also be a further £150 council tax rebate for most households in England, the council tax rebate will start from April and will apply to homes in council tax bands A to D, it will be paid directly by local authorities and will not need to be repaid.
The rebate on energy bills will provide around 28 million households with discount on their bills worth £200 and suppliers. This will apply from October, with the government meeting the costs.
However, this discount unlike the Council Tax rebate will be recovered from people's bills in equal £40 instalments over a five-year period from 2023, when it is hoped global wholesale gas prices will have come down.
There is also a new fund which helps those in Council Tax Bands from A – D who don’t pay Council Tax and helps people who live in areas where the Council Tax payable is higher.
This fund is also to target and support vulnerable people and individuals on low incomes who do not pay Council Tax, or who pay Council Tax for properties in the Bands E-H.
To summarise
Energy bills rebate
1. Domestic customers will get a discount up front of £200.
2. Energy suppliers will apply the discount to electricity bills of customers from October
2022.
3. This is not a free grant and will be repaid by customers from 2023.
4. This gas debt will be in small instalments of £40 per year over a 5-year period.
£150 Council Tax Rebate
1. In April, everyone will get a £150 rebate, if they live in a property that is in Council
Tax bands A – D.
2. This is a one-off rebate that will be made directly from your local council, and it does
not need to be repaid.
3. If you are not sure what council tax band, you’re on? You can find it on your latest
bill, or you can check using the link below:
https://www.gov.uk/council-tax-bands
Always remember there is support is available
Warm Home Discount Scheme
You could get £140 off your electricity bill for winter 2021 to 2022 under the Warm Home Discount Scheme.
The money is not paid to you - it’s a one-off discount on your electricity bill, between October and March.
You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity. Contact your supplier to find out.
https://www.gov.uk/the-warm-home-discount-scheme
Pension Credit
If you get Pension Credit you can also get other help, such as:
• Housing Benefit if you rent the property you live in
• Support for Mortgage Interest if you own the property you live in
• Council Tax Reduction
• a free TV licence if you’re aged 75 or over
• help with NHS dental treatment, glasses, and transport costs for hospital appointments
• help with your heating costs
https://www.gov.uk/pension-credit
Cold Weather Payment
You’ll get a payment if the average temperature in your area is recorded as, or forecast to be, zero degrees celsius or below over 7 consecutive days.
You’ll get £25 for each 7-day period of very cold weather between 1 November and 31 March.
The Cold Weather Payment scheme runs from 1 November 2021 to 31 March 2022. Check if you can get a payment in your area.
https://www.gov.uk/cold-weather-payment
Winter fuel Payment
If you were born on or before 26 September 1955 you could get between £100 and £300 to help you pay your heating bills. This is known as a ‘Winter Fuel Payment.’
https://www.gov.uk/winter-fuel-payment
You can also look at how you can save money:
Energy Savings Hub
They provide useful information and tips on how you can save money. E.g., ‘you can save around £55 a year just by remembering to turn your appliances off standby mode.’
sources; www.gov.uk/the-warm-home-discount-scheme