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All the payments that you could be entitled to as the energy price cap rises

Rising costs

Households in the UK are facing rising costs in energy prices, after Ofgem confirmed that the energy price cap will rise by 80% from October. The price cap will see a typical energy bill cost households £3,549 a year. It will remain in place until December 31^st, when it will be adjusted once again.

New data shows that nearly one in four adults won’t turn on their heating this winter, as average bills will increase. Around 23% said they would not turn their heating on at all. 7 in 10 said they would switch their heating on less, and 1 in 10 said they would take out a loan.

Help available

The Department for Work and Pensions (DWP) has some help available, including council tax rebates, automatic cost-of-living payments and payments for pensioners. Here is a list of the cost-of-living payments available from the DWP, and the eligibility requirements for each.

Council tax rebate

Households could be eligible for a £150 Council Tax rebate if you fall into council tax bands A-D. The DWP said the rebate will be automatically applied from April 2022 onwards, or councils will contact households. Occupants living in council tax bands A-D, and who are exempt from paying council tax, could still be eligible, such as students.

Cost of Living Payment

There is a £650 cost-of-living payment for eligible benefit claimants. This includes people on: Income-related Employment & Support Allowance, Income Support, Pension Credit, Child Tax Credit, Working Tax Credit, Universal Credit and Income-based Jobseeker’s Allowance.

From July, eligible households will receive the first half of the payment, around £326. The second half, £324, will be paid automatically from the autumn.

Energy bill discount

All households will receive a £400 discount on energy costs. It will automatically be paid in six instalments between October 2022 and March 2023. It will start as a discount of £66, rising by a £1 to £67 each month from December.

Some households may be provided with redeemable vouchers. The DWP says households won’t have to contact energy suppliers to organise the payment.

Disability payment

Around 6 million disabled people will be eligible for a one-off £150 Disability Cost of Living Payment, from September 20^th. Most people will receive the payment by the beginning of October.

The DWP says you’ll be eligible for this one-off payment if you’re getting any of the following: Attendance Allowance, Disability Living Allowance for children, Personal Independence Payment, Armed Forces Independence Payment, War Pension Mobility Supplement.

Pensioner Cost of Living Payment

Pensioners entitled to a Winter Fuel Payment will get an extra £300 for their household. The payment will be automatically paid with the normal Winter Fuel Payment from November 2022. The amount of Winter Fuel Payment varies based on circumstances.

Pension Credit

Pension Credit provides extra money to help those who are over State Pension age, and on a low income, with living costs. You may be eligible if your weekly income totals no more than £182.60, if you’re single, and a joint income of £278.70, if you have a partner.

Universal Credit

Universal Credit supports people on a low income or out of work. It includes monthly payments to help with living costs. People on Universal Credit could be eligible for additional support, including help with the cost of childcare and cheaper broadband and phone packages.