MILLIONS of households can get cost of living payments worth thousands over the coming months to help ease costs in the run-up to Christmas.
The colder months typically pile extra pressure on budgets as energy costs jump.
Millions of households will get payments to help with the cost of living over the coming months[/caption]
It comes as it was last month confirmed that average gas and electricity costs will rise by 2% or £35 a year in October.
At the same time, Christmas is an expensive time for families buying gifts and stocking up on food and drink.
Fortunately, there is plenty of help available for struggling households, including energy grants, cash vouchers, and extra benefits.
Here’s the help available if you’re feeling worried about costs this winter…
Household Support Fund – £1,000
Get help with the cost of living through the Household Support Fund.
The pot is worth £742million and it’s up to local councils how they share their portion.
Each authority has different qualifying criteria and gives support in different ways and for different amounts.
As a result, what you can apply for depends on where you live and, your financial situation.
The help could come through cash transfer or through shopping or food vouchers.
For example, in some parts of the country such as Portsmouth you can get as much as £1,000 in cash.
Whereas in Doncaster and other areas may be more likely to get up to £300 to support with gas, electricity and food costs.
Winter Fuel payment – £300
The Winter Fuel Payment is a benefit to help hard-up pensioners cover the cost of energy over the colder months.
Payments used to be given to all pensioners but has since been changed so that fewer can claim.
However, the cash worth up to £300, is still valuable for those who qualify – particularly those on Pension Credit.
The cash is usually paid in November and December, with some made up until the end of January the following year.
If you haven’t got your payment by then, you need to call the office that pays your benefits.
Households eligible for the payment are usually told via a letter sent in October or November each year.
Warm home discount – £150
The Warm Home Discount is a one-off £150 deduction on your electricity and sometimes gas bill.
The discount is usually applied automatically between October and March when households use more energy.
It is issued to people in England, Wales and Scotland on certain means-tested benefits including Universal Credit.
Not all firms are signed up to the scheme though, with a list of the 22 that are on the Government website.
There are different ways to qualify for the Warm Home Discount scheme based on where you live.
Households in England and Wales are eligible if they fit into two “core” groups.
Core group one applies to households where someone receives the Guarantee Credit element of Pension Credit.
Core group two applies to households on the following benefits:
- Housing Benefit
- income-related Employment and Support Allowance (ESA)
- income-based Jobseeker’s Allowance (JSA)
- Income Support
- the “Savings Credit” part of Pension Credit
- Universal Credit
You will need to have been claiming either the Guarantee Credit element of Pension Credit or the other qualifying benefits on August 24 this year to be eligible for the Warm Home Discount in 2025/26.
Households in Scotland are also bunched into two groups based on their circumstances.
Those on the Guarantee Credit element of Pension Credit, known as “core group”, get the £150 discount automatically applied.
Other Scottish households in the “broader group” on certain means-tested benefits qualify for the discount but have to apply via their energy firm.
Energy firms should tell you what benefits qualify you for the discount and may set extra criteria for you to meet as well.
Cold Weather payment – £25 a week
When freezing weather hits, eligible households are given extra money to help heat their homes through cold weather payments.
Temperatures need to be recorded as, or forecast to be, zero degrees or below, on average, for seven consecutive days between November 1 and March 31.
You get £25 for each seven-day period if you are on certain benefits.
You can check if your area has had a cold weather payment by popping your postcode into the government’s tool on its website.
Qualifying benefits are:
- Pension credit
- Income support
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Universal Credit
- Support for mortgage interest
Those in Scotland don’t get cold weather payments but may be able to receive a winter heating payment instead.
In previous years, dozens of postcodes received up to £75 after temperatures stayed low for several weeks.
DWP Christmas bonus – £10
Thousands of households on benefits receive a tax-free £10 cash boost from the Department for Work and Pensions (DWP).
The payment is usually paid to eligible households during the first full week of December.
Households will need to claim at least one of the 20 qualifying benefits within the same period.
The bonus is for those who receive Universal Credit plus one of the qualifying benefits from the following list:
- Armed Forces Independence Payment
- Attendance Allowance
- Carer’s Allowance
- Child Disability Payment
- Constant Attendance Allowance (paid under Industrial Injuries or War Pensions schemes)
- Contribution-based Employment and Support Allowance (once the main phase of the benefit is entered after the first 13 weeks of claim)
- Disability Living Allowance
- Incapacity Benefit at the long-term rate
- Industrial Death Benefit (for widows or widowers)
- Mobility Supplement
- Pension Credit – the guarantee element
- Personal Independence Payment (PIP)
- State Pension (including Graduated Retirement Benefit)
- Severe Disablement Allowance (transitionally protected)
- Unemployability Supplement or Allowance (paid under Industrial Injuries or War Pensions schemes)
- War Disablement Pension at State Pension age
- War Widow’s Pension
- Widowed Mother’s Allowance
- Widowed Parent’s Allowance
- Widow’s Pension
If you’re part of a married couple, in a civil partnership or live together, you’ll both get the cash bonus – as long as you both are eligible.
If you or your partner do not get one of the above qualifying benefits, then they could still get the bonus if they are over the state pension age by the end of the qualifying week.
Energy grants – £1,700
Families who have fallen behind on their gas and electricity bills can get help through free energy grants worth up to £1,700.
The British Gas Individual and Families Fund is open to prepayment meter customers who are between £50 and £1,700 in energy debt – and you don’t necessarily need to be a British Gas customer.
However, there are other terms to take into account.
For example, you must have a household income of less than £18,723 or someone in the home must be registered disabled and receiving a disability benefit.
British Gas isn’t the only energy firm that offers grants to struggling customers.
OVO, Boost, Eon, Eon Next, EDF, Scottish Power, Octopus, Shell Energy, SSE, Utilita and Utility Warehouse all have support open to customers in debt.
What energy bill help is available?
There’s a number of different ways to get help paying your energy bills if you’re struggling to get by.
If you fall into debt, you can always approach your supplier to see if they can put you on a repayment plan before putting you on a prepayment meter.
This involves paying off what you owe in instalments over a set period.
If your supplier offers you a repayment plan you don’t think you can afford, speak to them again to see if you can negotiate a better deal.
Several energy firms have schemes available to customers struggling to cover their bills.
But eligibility criteria vary depending on the supplier and the amount you can get depends on your financial circumstances.
For example, British Gas or Scottish Gas customers struggling to pay their energy bills can get grants worth up to £2,000.
British Gas also offers help via its British Gas Energy Trust and Individuals Family Fund.
You don’t need to be a British Gas customer to apply for the second fund.
EDF, E.ON, Octopus Energy and Scottish Power all offer grants to struggling customers too.
Thousands of vulnerable households are missing out on extra help and protections by not signing up to the Priority Services Register (PSR).
The service helps support vulnerable households, such as those who are elderly or ill.
Some of the perks include being given advance warning of blackouts, free gas safety checks and extra support if you’re struggling.
Get in touch with your energy firm to see if you can apply.