Chancellor’s response
In response to rising energy costs, the Chancellor has announced a three-part plan to help with household fuel bills immediately and protect people against half of this increase; worth £350 per household.
Firstly, all households with electricity meters will receive a £200 rebate on electricity costs from their supplier this October, which will be repaid over five years at a flat rate of £40 a year, with no interest, starting in April 2023.
Secondly, the Government will fund local authorities to give all households in Council Tax bands A-D a one-off council tax rebate of £150 in 2022-23. It is my understanding that the majority of people who pay by direct debit will receive the money in April.
Finally, the Government has provided £144 million of discretionary funding for local authorities to support households not eligible for the council tax rebate.
My team and I stand ready to support residents in accessing this assistance should you require.
Help for Vulnerable households
The Government have announced a new £500 million scheme for vulnerable households this winter.
Vulnerable households across the country will be able to access a new £500m support fund to help them with essentials over the coming months as the country continues its recovery from the pandemic. This will be administered through local authorities, and will help to cover the cost of essentials.
More details will be forthcoming in due course, but you can read the announcement here.
Home energy efficiency measures
The Government is working to reduce bills and tackle fuel poverty through the introduction of home energy efficiency measures. The Government’s Energy Company Obligation and the expanded Warm Home Discount schemes will provide at least £4.7 billion of extra support to low-income and vulnerable households between 2022 and 2026. More details on the Warm Home Discount scheme can be found here.
Winter Fuel Payment
If you were born on or before 26th September 1955 you could be entitled to a payment of £100-£300 towards the cost of your energy bills. Full details of eligibility and how to apply can be found here.
Cold Weather Payment
You may be eligible to receive a Cold Weather Payment if you get support for mortgage interest, or certain benefits including income support, job-seekers allowance or pension benefit. You also receive a payment if the weather is on or below freezing for 7 consecutive days. Cold Weather Payments begin from 1st November, and you can get £25 per each cold week. Full details on the Cold Winter Payment can be found here
Long-term solutions
Looking to the future, renewable energy is cheaper than gas and therefore the long-term solution is to move away from it. The UK renewable capacity is up 500 per cent since 2010. However, the Government recognises that more must be done. That is why it is accelerating renewables with annual Contract for Difference auctions. The more cheap, clean power we generate in the UK, the less exposed we will be to global gas markets. The Prime Minister will announce an Energy Supply Strategy in due course which will address how the Government will meet the needs of the UK in the short, medium and long term.