Government Support
The government has set out action to support people and businesses with their energy bills and tackle the root causes of the issues in the UK energy market through increased supply.
The Energy Price Guarantee will reduce the unit cost of electricity and gas so that a typical household will save around £700 this winter, reducing bills by a third compared to levels listed under the current price cap. The Energy Price Guarantee will run from 1 October 2022 to 31 March 2023, followed by a review to offer more targeted measures after this period.
Your saving will be based on usage. Your actual bill and savings could be higher or lower depending on factors such as the size, insulation, and energy efficiency of your home.
This discount is automatic, so you do not need to apply or contact your energy supplier.
The Energy Bills Support Scheme
The Energy Bills Support Scheme provides a £400 discount to all households with a domestic electricity connection. The discount will be applied to your monthly electricity bill for six months starting in October 2022. You will receive £66 in October and November, and then £67 in December, January, February, and March.
The discount will be applied in the following ways, based on how you pay:
- Direct Debit – Either a reduction on your monthly Direct Debit amount or a refund to your bank account following the collection
- Standard Credit/Payment Card – Applied as credit to the account on the first week of each month
- Smart Pre-Payment Meter – The discount will be credited to the meter in the first week of each month
- Traditional Pre-Payment Meter – The discount will be applied through the first week of each month via redeemable SMS, email or post voucher or an automatic credit when you top up. Your supplier will inform you on how to get the discount
For households that do not have a domestic electricity contract, the Government has introduced the Energy Bill Support Scheme Alternative Funding to provide the £400 payment. This is in addition to the £100 Domestic Alternative Fuel Payments, for those with alternative fuel sources, such as heating oil or LPG, with more information on both payments will be published soon.
As part of the packages of support announced earlier this year, you may be eligible to receive up to three different types of payment depending on your circumstances. This includes:
- The £650 Cost of Living Payment if you claim income-related benefits, such as Universal Credit, Employment & Support Allowance (ESA), Income Support, Child Tax Credit, Working Tax Credit, Income-Based Jobseeker’s Allowance (JSA) or Pension Credit, paid automatically
- The £150 Disability Cost of Living Payment if you claim the Disability Living Allowance, Personal Independence Payment (PIP), Attendance Allowance, Scottish Disability Benefits, Armed Forces Independence Payment, Constant Attendance Allowance and War Pension Mobility Supplement, paid automatically
- The £300 Pensioner Cost of Living Payment delivered as an annual top-up to the Winter Fuel Payment in November/December, paid by Direct Debit
Additionally, those in Council Tax bands A-D are entitled to a £150 Council Tax Rebate, paid automatically.
You can check your eligibility for these payments here.
The Government is supporting businesses through the separate Energy Bill Relief Scheme, in which the Government supported price will be set at £211 per MWh for electricity, and £75 per MWh for gas. This provides non-domestic users with more security, particularly with wholesale costs expected to be at £600 per MWh for electricity, and £180 per MWh for gas.
Your supplier will apply the reductions to your bills automatically, reflective of your current contract with your supplier:
- Fixed – The discount reflects the different between the Government supported price and the wholesale price on the day the contract was agreed
- Variable, Deemed and Other – The discount reflects the difference between the Government supported price and relevant wholesale price, but is subject to a ‘maximum discount’ (£345/MWh for electricity, and £91/MWh for gas)
Energy Supplier Support
Legally, your energy supplier is required to help you. It is important that, if you are struggling to pay your energy bills, you contact your supplier as soon as possible.
Your supplier will be able to provide a variety of ways to help you, ranging from helping set up payment plans to providing grants, depending on your circumstances. Suppliers are working closely with charities and consumer groups to ensure that everyone can access the support schemes they need and the relevant links can be found below:
Further information about grants and other support regarding energy bill payments can be accessed through Citizens Advice.
If you can’t get a grant from your supplier, you may be able to get a grant from the British Gas Energy Trust. This grant is available to everyone and you do not have to be a British Gas customer. For more information, click here.
For businesses, the independent regulator Ofgem offers advice on contacting your supplier and this can be accessed here.
Local Support
Locally, there are a number of schemes to help those who are impacted by the cost of living.
As part of the Household Support Fund, Warwickshire County Council has launched its Local Welfare Scheme to distribute funding to vulnerable residents requiring items necessary for day-to-day living, such as food, water, and energy.
In addition, the Household Support Fund is providing short-term support for those who are struggling to access the essentials. More information on the fund can be found here.
Warwick District Council has provided additional financial support for its most vulnerable residents impacted by rising energy and living costs. Those that are eligible will qualify for a payment of up to £200.
