Ofgem's price cap has risen by £149 from today and many Brits are concerned about how they will cover energy bills over the winter months.
From today, Ofgem's price cap has risen from £1,568 to £1,717 for a typical dual fuel household paying by direct debit. Campaigners fear that the 10% hike in energy bills today will put even more pressure on households over the winter with further concern for the well-being of vulnerable and elderly households.
A recent YouGov survey for National Energy Action found that 46% of adults say they are likely to ration energy use this winter. And 27% found it hard to pay for their energy in the last year, rising to 45% for those earning less than £15,000 a year.
If you can't see the poll, click here
For those who are worried about struggling, there is help available. Help you can claim includes payment holidays, free cash payments, and energy discounts. Here is a full list of help which you can get this winter.
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Talk to your energy supplier ASAPIf you don't think you can cover your next energy bill, or the cost of your energy bills are becoming unmanageable, then you should speak to your supplier as soon as you can. If your supplier knows your situation then it can put things in place to help you - under Ofgem rules, all suppliers have to do this. Your supplier can offer you a range of options which could help, which include:
- A full payment plan review
- Affordable debt repayment plans
- Payment breaks (though this won't be right for everyone)
- Payment reductions
- More time to pay
- Access to hardship funds
The help you can get is decided on a case-by-case basis - so not everyone will get the same. If you are classed as a vulnerable customer, your supplier can put you on the Priority Services Register. This is a free support service which offers a wide range of extra support. This includes advance notice of planned power cuts, priority support in an emergency and help with reading your meter.
To be eligible for this support you will need to have reached the state pension age, have a disability or long-term medical condition, or be recovering from a medical condition. If your provider does not have this information about you, you should contact them to tell them.
Energy hardship schemesIf you speak to your supplier, you may be offered or told to apply for support through its energy hardship scheme. The majority of the UK’s biggest energy firms such as British Gas, EDF, Octopus Energy, E.ON, and Ovo offer help through grants to those struggling to pay their bills.
British Gas offers help to both customers and non-customers through grants of up to £2,000 to help with energy debt through its British Gas Energy Support Fund and its Individuals and Families Fund. Other energy suppliers offering support to its customers include Octopus Energy, EDF, E. On Next, and Ovo Energy.
Exact eligibility requirements vary – for example, some say you need to be in receipt of certain benefits – and you normally need to have spoken to a debt advisor first. Get in contact with your energy supplier to see if it has a hardship fund available.
Government schemesWarm Home Discount
The Warm Home Discount is a one-off payment of £150 which is taken off your electricity bill or added to your prepayment meter over the winter months. You get the payment automatically if your electricity supplier is part of the Warm Home Discount scheme.
To qualify, the bill payer must be on a low income with high energy costs or get the guarantee credit element of pension credit. The scheme is open from October until March, and those eligible will be contacted by their energy supplier soon.
Winter Fuel Payment
The Winter Fuel Payment is an annual one-off tax-free payment for pensioners who are claiming Pension Credit. The amount you get is dependent on your specific circumstances such as if you live alone or with a partner and you can get between £100 and £300 altogether.
Cold Weather Payments
Cold Weather Payments, worth £25, are paid by the DWP when an area of the UK experiences or is forecast to experience temperatures of under zero degrees for seven consecutive days. The scheme runs from November 1 to March 31 in England, Wales, and Northern Ireland, and to be eligible you must claim the following benefits:
- Pension credit
- Income support
- Income-based jobseeker’s allowance
- Income-related employment and support allowance (ESA)
- Universal Credit
- Support for mortgage interest (SMI)
Those receiving income support or income-based jobseeker’s allowance can get cold weather payments if they have a disability or pensioner premium, a child who is disabled, a child tax credit that includes a disability element, or a child under five living with them.
Scotland has got rid of the cold weather payment and replaced it with a new Winter Heating Payment, and unlike the cold weather payment, the Scottish payment does not depend on how cold the temperature gets. It’s a yearly payment of £50 that’s paid automatically to those who are eligible.
Households Support Fund Scheme
This government funded scheme has been extended for another six months to cover winter this year. The fund, renewed for the fifth time by Labour’s Rachel Reeves, provides £421 million to local councils who then spend the cash on cost of living support. This includes things such as cash payments and energy bill support. The fund renews from October 1 and your local council will soon be publishing the help it will offer on its website.
CharitiesFinally, there are several charities that can offer you support and guidance if you are struggling to pay for your energy, or if you are in energy debt.
For wider debt help, speak to:
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