A third of us plan to ration heating to keep bills down
NEARLY a third (31%) of people will try to ration their heating during the coming months to keep costs down, a survey for Comparethemarket.com has found.
Around half (49%) are worried that being at home more will lead to higher costs this winter, rising to six in 10 (60%) of people aged 34 and under. Three in 10 (29%) of all households surveyed said they are probably not in a financial position to meet the cost of higher energy bills this winter. Comparethemarket.com said a rise in consumption may lead to households paying nearly £80 more typically in November and December than normal. Aside from rationing how much heating they use, some households would consider cutting costs in other areas such as food shopping and luxuries (27%); dipping into savings (19%); going into debit on their energy bill account (12%); asking family or friends for support (7%); or using a credit card (7%).
Information on regulator Ofgem’s website, for households managing their energy supply during the coronavirus pandemic, says that if people are struggling, potential options include reviewing bill payment plans, payment breaks or reductions and more time to pay. Anyone working from home this winter may also be able to get tax relief, including if they are having to work from home due to coronavirus – but not if they choose to work from home. Employers can pay employees up to £6 a week tax-free to cover additional costs if they have had to work from home. But employees who have not received the working from home expenses payment direct from their employer can apply to receive the tax relief from HM Revenue and Customs (HMRC). Eligible taxpayers can claim tax relief based on the rate at which they pay tax. If you pay the 20% basic rate, tax relief on £6 a week would be £1.20 towards the cost of bills. Some people, such as pensioners and those on certain benefits, can also get winter fuel payments of up to £300.
■ For more information see gov. uk/tax-relief-for-employees/ working-at-home or gov.uk/ winter-fuel-payment