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Energy bills will fall for millions of homes from this weekend – but the overall cost of living remains punishingly expensive.

Fortunately for hard-up households there are several help schemes from Government and energy firms that offer cash and vouchers of up to £1,500 a year.

The Ofgem price cap will fall from 1 October to £1,923 a year for the average household, down from £2,074 a year currently. 

This discount applies to more than 90 per cent of UK households, namely those on variable-rate energy deals paying by direct debit.

Pensioner payouts: Retirees are just one of the groups eligible for extra help this winter

But with energy bills still running at around £2,000 a year, and with overall inflation still high at 6.7 per cent, many Britons are still in need of extra help over the expensive winter months.

Here is all the cost of living and energy bill help available during the autumn, winter and spring. 

Energy firm support grants

Many energy firms offer support grants over the coldest months to help customers who are struggling to pay their bills.

British Gas has announced that its Energy Support Fund will open for new applications on 2 October, and give grants of up to £1,500.

Any British Gas or Scottish Gas energy customer who is struggling to pay their energy bill and has sought money and energy advice can apply.

More than 21,000 grants have been given out since 2021 with more than a third of recipients on disability benefits.

Around a third are single parents, and another third have children under five years old.

 No other energy firm is currently accepting applications for grants. But last winter these were available from firms including E.On Next, EDF, Octopus Energy and Shell.

What is the future for energy bills? 

The £1,923 Ofgem price cap lasts from October 1 until December 31.
Households on variable rate tariffs will pay varying amounts depending on their energy use.
From January 1, Ofgem resets its price cap.
It has made no predictions about what this will be. But energy experts at Cornwall Insight believe the price cap will rise, to £1,996, due to increases in wholesale energy prices. 

Cost of living payment for pensioners

Pensioners who get winter fuel payments also qualify for £150 or £300 as a pensioner cost of living payment this year.

The money is meant to help pay energy bills, which tend to be higher for the elderly as they require warmer homes and may have plug-in medical equipment.

Winter fuel payments are worth up to £600 and are paid to households containing someone born before September 26, 1956.

Eligible claimants should get the pensioner cost of living payment automatically.

Warm Home Discount 

The Warm Home Discount is a £150 payment towards the cost of energy.

It goes out to two groups: those who get the Guarantee Credit element of Pension Credit and those on certain means-tested benefits.

Households with a standard meter get the £150 as a rebate on their bills, while those with pre-payment meters get a voucher.

Payments will be made between October 2023 and March 2024.

Cash or vouchers from the Household Support Fund

Households struggling with the cost of living can apply for cash and vouchers from the Household Support Fund.

This is a pot of Government cash that is handed out by local councils to people in their region.

The scheme was topped up with £842million in April of this year, and will run until April 2024.

Cash help: Those struggling with everyday costs can apply to their local council for support

The scheme is a postcode lottery, as each council decides how to hand out the money – and to whom.

Some councils will give out vouchers, and others cash, for example.

Local authorities have paid money and vouchers worth up to several hundred pounds per home.

Anyone can apply, but they may need to meet eligibility rules, such as having a low income.

Cold Weather Payment

Payments of £25 a week are made to eligible households when the temperature recorded at their local weather station is at or below zero degrees celsius for seven consecutive days.

The Cold Weather Payment scheme runs from the start of November to the end of 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 will be eligible.

They will not have to apply for the payment and will automatically be sent it.

The money is paid out by the Department for Work and Pensions

Could you get a cheaper energy deal?

The alternative to expensive price-capped energy deals are fixed-rate tariffs.

These were almost always the cheapest option for consumers, but energy firms stopped offering them to new customers after prices began rising in October 2021.

Now most energy firms are selling fixed-rate tariffs again, but for existing customers only.

This means they do not have to publish what rates they are offering, under Ofgem rules.

Consumers tempted by fixed-rate energy tariffs should be as confident as possible that they offer a good deal. 

This means comparing the unit rates and standing charge on their current variable deal, with that of the fixed tariff.  

Most are priced at or above the current price cap level, meaning consumers will not make significant savings by taking them out.

But if your energy firm does offer you a good fixed rate, it is worth considering.

Analysts at Cornwall Insight, who have accurately predicted most price cap movements, believe energy bills will remain between £1,800 and £2,000 a year for most homes for at least the rest of 2024. 

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Content source – www.soundhealthandlastingwealth.com

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