Everything you need to know about the government’s cost of living support package to help with your energy bills
Published on:
27 February 2023
Last updated:
16 November 2023
If you’re wondering how your household finances will be affected by rising energy prices and more, here are the grants and payments that are currently available to help with your bills.
The Energy Bill Support Scheme
This scheme ended in March 2023. Every household that paid a domestic electricity bill was given £400 towards the rising cost of energy.
2023 Energy Price Cap
The Ofgem price cap is now £1,834 a year, and this will change to £1,928 a year on 1 January 2024.
What the new Energy Price Cap means for you
The Ofgem price cap limits how much your supplier can charge you for the energy you use. You might pay less than the unit rate set by the price cap if you have a fixed deal on your energy.
Our blog Should I fix my energy bills? has more details about the sort of offers that are available.
How does the Energy Price Cap work?
It’s important to note that the energy price cap does not limit your total bill. It limits the cost of unit of energy and your standing charge – so depending on how much you use, your bill could be lower or higher.
The price cap only applies to customers who are on a standard variable tariff. If you’re on a fixed deal you could be charged more than the price cap.
Ofgem changes the price cap every three months, in January, April, July and October. It’s based on the wholesale cost of energy, so if that changes, your bills will change too if you’re on the price cap.
The price cap is the same for households who pay by Direct Debit and people who use prepayment meters.
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2023/24 Cost of Living Payments
Three Cost of Living Payments are being sent out across 2023/24 for people on means tested benefits, as well as extra payments for pensioners and people with disabilities. Like the previous Cost of Living Payments, these will go directly into your bank account and you shouldn’t need to apply for them.
You’re likely to qualify if you’re getting any of these benefits:
- Universal Credit
- Income-based Jobseekers Allowance
- Income-related Employment and Support Allowance
- Income Support
- Working Tax Credit
- Child Tax Credit
- Pension Credit.
If you’re not getting these benefits and are living on a low income, it’s important to make sure you’re getting everything you’re entitled to.
Take a few minutes to check which benefits you can claim and how much you could get a month with our Benefits Calculator
Three Cost of Living Payments will be made to those eligible:
- £301: first Cost of Living Payment – 25 April - 17 May 2023
- £150: Disability Payment – 20 June – 4 July 2023
- £300: second Cost of Living Payment – 31 October – 19 November 2023
- £300: Pensioner Payment – during Winter 2023/4
- £299: third Cost of Living Payment – during Spring 2024.
You will need to have claimed certain benefits during a specific period to qualify for each payment. You can find these on the GOV.UK siteOpens in a new window
What to do if you worry that you’ll still struggle with your bills
As much as these payments will be a big help to lots of people, many others will still find it hard to make ends meet.
If that’s the case for you, you’re not alone and there is help out there. Find out more in our guide Managing your money in uncertain times, which can point you in the right direction.
