The UK is amid a cost-of-living crisis with prices rising at a staggering rate, seeing an estimated 8.9 million households in the UK fall into Fuel Poverty come October. With the news of the October price cap increase, information and support is scattered across the internet, so we put together a guide to help navigate the support available during this time.
Energy Price Guarantee
In reaction to the cost of living crisis, Prime Minister Liz Truss has announced the Energy Price Guarantee, a new price cap on standing charges, and the unit rates for gas and electricity. The price cap means that typical households will pay £2,500 a year from 1 October 2022 for the next two winters.
What is the Price Guarantee?
The Energy Price Guarantee will ensure that a typical household in Great Britain pays an average £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022.
The consumer saving will be based on usage, but a typical household will save at least £1,000 a year (based on current prices from October).
What are the new rates?
The new October price guarantee average direct debit rates have been announced:
Electricity:
Unit rate: 34.00p per kWh | Standing charge: 46.36p per day.
Gas:
Unit rate: 10.30p per kWh.| Standing charge: 28.49p per day
These rates only apply to homes on default standard tariffs (about 85% of homes).
How do I get the price guarantee?
You do not need to apply, and there’s no need to contact your energy supplier.
For consumers in England, Scotland and Wales who pay for their energy through a monthly, quarterly or other regular bill, the Energy Price Guarantee will be applied when your bill is calculated.
For pre-payment meter customers, the Energy Price Guarantee will be applied to the rate you pay for each unit of energy, so the money you put on the meter will last longer than would otherwise have been the case this winter.
If you’re on a fixed tariff, the Energy Price Guarantee will protect you in the same way that it protects standard variable tariff (SVT) customers.
Energy suppliers will adjust fixed tariffs automatically. Customers on fixed tariffs do not need to take any action to get the benefits of this scheme.
How does this compare to the October Price Cap increase?
The Energy Price Guarantee will REPLACE the October price cap that Ofgem announced late August.
This will be a cap on standing charges and unit rates, so use less, you pay less, use more, pay more .
The current price cap is £1,971 a year at typical use, and was due to rise to £3,549 a year (and likely £5,400 a year in January), The new price guarantee starts 1 October, and for someone on typical use will be £2,500 a year and it will last for two years
Will I still get cost of living payments?
Yes.
The £400 payment to all homes (paid as £66 a month over winter) will continue. That will take the average payment to £2,100 a year.
The £650 payments to those on many benefits will continue (half’s already been paid).
As will the £150 to disabled people and £300 to pensioners.
Cost-of-Living Payments
In addition to the energy price freeze, cost-of-living payments will still be paid out, make sure you’re receiving what you are owed.
Energy Bills Support Scheme
The government will give every household in Great Britain £400 off their electricity bill. This is called the Energy Bills Support Scheme. You don’t need to do anything to get the money and you won’t have to pay it back.
You’ll get the £400 in 6 installments starting from October 2022. You’ll get:
- £66 in October and November
- £67 in December, January, February and March
If you have an electricity meter and pay your bills every month or quarterly, your supplier will automatically take the amounts off your energy bill each month.
If you have a prepayment meter, your supplier will confirm how you’ll get the £400 closer to October 2022. They’ll either:
- automatically add the installments to your energy meter
- give you the installments as vouchers by email, text or post
If you get vouchers, you’ll only be able to use them for your own energy account.
Cost-of-living payments for qualifying households
| Name of Scheme | Amount | Eligibility | When and how you will get it |
| Low-income benefit and tax reduction | £650- Paid in two installments £326 (paid in July) and £324 (date TBC) | You can get the fund if you are in receipt of qualifying benefits: – Universal Credit – JSA – ESA – Income Support – Pension Credit – Child Tax Credit – Working Tax Credit | This will be paid directly to you. Second payment Autumn/ Winter 2022 |
| Disability cost-of-living payment | £150 | In receipt of disability benefits as of 25th May 2022: – Attendance Allowance – Disability Living Allowance – Personal Independence Payment – Armed Forces Independence Payment – War Pension Mobility Supplement | Paid directly to you. Beginning of October 2022 |
| Pensioner cost-of-living payment | £300 | If you’re entitled to a Winter Fuel Payment for winter 2022 to 2023, you will get an extra £300 for your household paid with your normal payment from November 2022. | Paid with Winter Fuel Payment. November 2022 |
| Welsh Winter Fuel Support Scheme | £200 | The scheme will be open to households where an applicant is in receipt of one of the qualifying benefits: – Income Support – Income Based Job Seekers Allowance – Employment and Support Allowance – Universal Credit – Working Tax Credits – Child Tax Credits – Pension Credit – Personal Independence Payment (PIP) – Disability Living Allowance (DLA) – Attendance Allowance – Carers Allowance – Contributory Benefits – Council Tax Reduction Scheme (CTRS) Applicants must also be responsible for paying the energy bills for the property. | Applications can be made to local authorities via their website when the scheme opens on 26 September 2022. Find your local authority. |
Additional Support
Local Authorities
Your local council may have support schemes known as ‘welfare assistance’ or the ‘Household Support Fund’. Each council runs its own scheme. The help they offer and who can get it varies. Help may include:
- Energy and water bills
- Food
- Essential items – for example, clothes or an oven
Ask your local council if they run a ‘welfare assistance’ or a ‘Household Support Fund’ scheme. You can find out how to contact your local council on GOV.UK
Support Organisations
Shelter
Foodbank
Citizens Advice
Money Helper
Money Saving Expert
Get in touch with Warm Wales
We have a team of trained energy advisors and Community Workers to help provide advice, referrals, and access to grants to ensure no one is living in unsafe or cold homes. Our team of Community Workers are working across Wales to help provide you with the support you need.
Get in touch today to see how we can help you.
Our services are completely free and open to everyone.
