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Three-month extension of energy price guarantee welcome, but key state support schemes expire Millions of people across the UK continue to struggle with skyrocketing bills as the cost of living crisis continues. From the Energy Support Scheme to the Warm Home Discount, help is available.
But it can be difficult to keep track of the different initiatives and their duration. Below, we take a look at the help households are eligible for and the key dates to look out for to make sure you don't miss a thing.
ENERGY PRICE GUARANTEE
There was good news for consumers in Jeremy Hunt's Budget on March 15, with the Chancellor announcing the Energy Price Guarantee (EPG), introduced by Liz Truss last September to ensure households pay no more than £2,500 for its electricity and gas - with the government subsidizing the remainder allowed by Ofgem's energy price cap - would be extended for another three months.
Hunt was tempted to increase the EPG to £3,000 from April 1, a considerably less generous offer that would have eased the burden on the estate, but eventually thought better of it.
“High energy bills are one of the biggest concerns for families, so we are keeping the energy price guarantee at its current level,” the chancellor told parliament.
"With energy bills expected to drop from July, this temporary change will close the gap and ease the pressure on families, while helping to reduce inflation."
Without this support, the average household would have paid an annualized bill of £4,279 between January and April but, thanks to the EPG, this has been reduced to £2,500 and the government recovered the remaining £1,779.
Ofgem has since reduced the cap by 23% to £3,280 for the second quarter of the year, and Hunt's decision means the public will still be protected rather than pay the full amount, while the state will pay much less, more like £780 per household.
ENERGY BILL SUPPORT PROGRAM
Although it may seem like a positive development, the energy bill support scheme that Rishi Sunak introduced a year ago during his stay at 11 Downing Street expires at the end of March when the last installment of £67 arrives in bank accounts. out of the £400 total. .
Campaigners such as Citizens Advice chief executive Dame Clare Moriarty have warned that the change means many families could end up paying more despite recovering national fortunes.
"Withdrawing from the Power Bill Support Scheme will still mean the average monthly bill will rise by £67 from April," he said. “With millions of people no longer able to pay their bills and energy prices expected to remain high for years to come, the government must now consider long-term solutions to this problem.
“Many people, especially those with low incomes, will need continued support not only to pay their bills, but also to make their homes safer and warmer through better energy efficiency.
Sarah Coles, personal finance manager at Hargreaves Lansdown, agreed, commenting: “Unfortunately, we're not out of the woods yet. The loss of the April monthly discount is going to be a big blow again, as we'll have to find an extra £67 every month somewhere.
“Already, 48% of people have difficulty paying their energy bills, compared to 54% among those aged 30-40. Meanwhile, more than one in 20 have been late on their bills (6%). This figure rises to one in seven of the bottom fifth earners.
"For these people, removing the £67 a month cut will mean even bigger nightmares."
WINTER SUPPORT MEASURES END SOON
In addition, two other programs that provided financial assistance to low-income families this winter also expire at the end of March: the Warm Home Discount Program and the Cold Weather Payment Program will no longer apply.
On top of that, Britain's inflation rate remains in double digits at 10.1%, keeping the cost of goods on supermarket shelves high, while the Bank of England's monetary policy committee raised interest rates at 4%.
KEY DATES FOR EASTER BENEFITS
Despite this gloomy context, the usual state support in the form of subsidies and pensions will disappear as usual in April, although it must be borne in mind that the arrival of Easter complicates things a bit.
As Good Friday (April 7) and Easter Monday (April 10) are public holidays, anyone who expects to receive any of the following payments from the Department for Work and Pensions (DWP) on any of these dates will receive their money before. Thursday, April 6 instead:
If you don't expect payment by either of these dates, you should be paid normally and you won't be affected by the small interruption.
For more information on how and when state benefits are paid, visit the government website.
WHEN TO APPLY FOR ADDITIONAL HELP OF £1,350
It's also worth bearing in mind that the DWP has announced that millions of low-income households will receive additional cost-of-living support worth up to £1,350 this year.
Eight million claimants eligible for means-tested benefits, including those from Universal Credit, Pension Credit and Tax Credits, will receive £900 in installments from this spring, with the money going directly to bank accounts in three installments, said the DWP.
There will also be a separate payment of £150 for more than six million disabled people and a further £300 for more than eight million pensioners.
These are the payment windows that have been announced:
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Dominic Lipinski/AP
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