Many people in our local area, and across the country, are struggling to make their incomes stretch to cover the rising cost of living.

To alleviate some of the pressures, the Government has announced a cost of living package designed to support residents and businesses. Below you will find further details on each of the measures available.

Supporting households through the Energy Price Guarantee (EPG)

• The Energy Price Guarantee (EPG) is giving people certainty with their bills. The EPG discounts the unit cost for gas and electricity use.
• This guarantee was extended by 3 months in the Spring Statement 2023, which includes the temporary suspension of green levies and means that a typical household will pay no more than £2,500 per year until 30 June 2023. This comes in addition to the £400 Energy Bill Support Scheme (EBSS), detailed below.
• The Government announced during the Spring Statement on 15 March 2023, that the planned increase to a level of £3,000 per year for the EPG, will be implemented on 1 July, rather than 1 April as previously announced.
• Those households not on standard gas or electricity contracts, such as those living in park homes or on heat networks – and so outside the scheme – will receive support equivalent to both the Energy Price Guarantee and the Energy Bills Support Scheme.
• The business which has the direct commercial relationship with the energy supplier (for example the park owner) will receive support via the Energy Bill Relief Scheme and we will act now to introduce legislation so that they have to pass the benefit directly on to residents.
• With prices forecast to remain elevated throughout next year, this equates to an average of £500 support for households in 2023-24.
• Further information can be found on the Energy bills support fact sheet.

Business and non-domestic customer support with the Energy Relief Scheme and Energy Bills Discount Scheme

• Through the Energy Bill Relief Scheme, the government will provide a discount on wholesale gas and electricity prices for all non-domestic customers (including all UK businesses, the voluntary sector like charities and the public sector such as schools and hospitals) whose current gas and electricity prices have been significantly inflated in light of global energy prices. This support will be equivalent to the Energy Price Guarantee put in place for households.
• The scheme will apply to non-domestic energy users on fixed contracts agreed on or after 1 April 2022, signing new fixed price contracts, variable or deemed tariffs, or flexible purchase contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial 6-month period. The savings will be first seen in October bills, which are typically received in November.
• Following the end of the current Energy Bill Relief Scheme, the Energy Bills Discount Scheme will provide all eligible businesses and other non-domestic energy users across the UK with a discount on high energy bills until 31 March 2024.
• The new scheme supports businesses over the next 12 months and limits taxpayer’s exposure to volatile energy markets, with a cap set at £5.5 billion based on estimated volumes.
• For most non-domestic energy users in Great Britain and Northern Ireland these maximum discounts have been set at:
  • electricity - £19.61 per megawatt hour (MWh) with a price threshold of £302 per MWh.
  • gas - £6.97 per MWh with a price threshold of £107 per MWh
• The Government is also providing domestic UK Heat Network customers on non-domestic heating contracts with a new, sector specific support rate.
• Further details can be found here.

Prepayment Meters

• The Government is also removing the premium paid by over 4 million households using prepayment meters (PPM), bringing their charges into line with comparable direct debit customers until the EPG ends and saving them an average of £45 a year.
• The Government supports Ofgem’s ongoing work to review PPM costs and has asked the regulator to report by the autumn on any additional regulatory options, including options for ending the PPM standing charge premium, so that they are ready for implementation in April 2024.

Energy Bills Support Scheme doubled to a one-off £400

• Households will get £400 of support with their energy bills through an expansion of the Energy Bills Support Scheme.
• As well as doubling the £200 of support announced earlier this year, the full £400 payment will now be made as a grant, which will not be recovered through higher bills in future years.
• Energy suppliers will deliver this support to households with a domestic electricity meter over six months from October. Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
• Households will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023.
• This support will apply directly for households in England, Scotland, and Wales. It is GB-wide and we will deliver equivalent support to people in Northern Ireland.
• This support is in addition to the £150 Council Tax rebate for households in England in Council Tax bands A-D, which was announced in February, and which millions of households have already received.
• Further details can be found here.

£650 one-off Cost of Living Payment for those on means tested benefits

• More than 8 million households on means tested benefits will receive a payment of £650 this year, made in two instalments. This includes all households receiving the following benefits:
  • Universal Credit
  • Income-based Jobseekers Allowance
  • Income-related Employment and Support Allowance
  • Income Support
  • Working Tax Credit
  • Child Tax Credit
  • Pension Credit
• The Department for Work and Pensions will make the payment in two lump sums – the first from July, the second in the autumn. Payments from HMRC for those on tax credits only will follow shortly after each to avoid duplicate payments.
• For recipients of DWP benefits: To get the first Cost of Living Payment, you must have been entitled to a payment (or later found to be entitled to a payment) of either:
  • Universal Credit for an assessment period that ended in the period of 26 April 2022 to 25 May 2022.
  • Income-based JSA, income-related ESA, Income Support or State Pension Credit for any day in the period of 26 April 2022 to 25 May 2022.
• For recipients of tax credits: To get the first payment, you must have received a payment, or an annual award of at least £26, of tax credits on any day in the period 26 April 2022 to 25 May 2022.
• HMRC and DWP will provide further guidance, and the government will set out the qualifying dates for the second instalment, in due course.
• This payment will be tax-free, will not count towards the benefit cap, and will not impact existing benefit awards.
• The government will make these payments directly to households across the UK.
• Additional cost of living payments will be introduced next year of £900 to households on means-tested benefits.
• Further details can be found here: https://www.gov.uk/guidance/cost-of-living-payment. 

One-off £300 Pensioner Cost of Living Payment

• Pensioners are disproportionately impacted by higher energy costs, and many low-income pensioner households do not claim the means tested benefits they are entitled to.
• So pensioner households will receive an extra £300 this year to help them cover the rising cost of energy this winter.
• This additional one-off payment will go to the over 8 million pensioner households across the UK who receive the Winter Fuel Payment and will be paid on top of any other one-off support a pensioner household is entitled to, for example where they are on pension credit or receive disability benefits. Eligible households currently receive between £200 - £300, so the payment will represent at least double the support for this winter.
• The Winter Fuel Payment (including the extra Pensioner Cost of Living Payment) is not taxable and does not affect eligibility for other benefits.
• All pensioner households will get the one-off Pensioner Cost of Living Payment as a top-up to their annual Winter Fuel Payment in November/December. For most pensioner households, this will be paid by direct debit.
• People will be eligible for this payment if they are over State Pension age (aged 66 or above) between 19 – 25 September 2022.
• There are certain circumstances where an individual above State Pension age does not qualify for the Winter Fuel Payment which can be found here: https://www.gov.uk/winter-fuel-payment/eligibility
• The government will make these payments directly to households across the UK.
• Further details can be found here: https://www.gov.uk/guidance/cost-of-living-payment. 

£150 Disability Cost of Living Payment

• Around six million people across the UK who receive the following disability benefits will receive a one-off payment of £150 from September:
  • Disability Living Allowance
  • Personal Independence Payment
  • Attendance Allowance
  • Scottish Disability Benefits
  • Armed Forces Independence Payment
  • Constant Attendance Allowance
  • War Pension Mobility Supplement
• People with disabilities may face a wide range of additional costs, such as specialist equipment, specialist food, and increased transport costs, and this payment will help with these costs as they are likely to have increased.
• Claimants must have received a payment (or later receive a payment) of one of these qualifying benefits for as of 25th May 2022 to get the payment.
• For the many disability benefit recipients who receive means tested benefits, this £150 will come on top of the £650 they will receive separately.
• These payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
• The government will make these payments directly to eligible people across the UK.
• Further details can be found here: https://www.gov.uk/guidance/cost-of-living-payment. 

£500m increase and extension of Household Support Fund

• To support people who need additional help, the Government is providing an extra £500 million of local support, via the Household Support Fund, which will be extended from this October to March 2023.
• The Household Support Fund helps those in most need with payments towards the rising cost of food, energy, and water bills.
• The government will issue additional guidance to Local Authorities to ensure support is targeted towards those most in need of support, including those not eligible for the Cost of Living Payments set out on 26 May 2022.
• This brings the total amount provided through the Household Support Fund to £1.5 billion since October 2021.
• The Household Support Fund is administered by local councils in England and further information will be available directly from them. Eligibility will be determined by individual councils.

Further information and support

• Some of the most frequently asked questions on the current cost of living challenge are answered here.
• How the Government will tax excess energy company profits is detailed here.
• Information on the roll out of smart metres and how one may benefit you can be found here.
• Links to other sources of help and advice can be found here.