Rake in all the energy help you can

IT may not seem like there is any good news around energy prices now they have rocketed to sky-high rates.

But energy regulator Ofgem has said they would have hit an astronomical £4,279 in January if the energy price cap was still in place – a narrow escape from huge bills.

The energy price guarantee, which was brought in by the Government to help with escalating energy prices, will keep average bills at £2,500 until April and from then it will be £3,000 for the next six months.

Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “In these temperatures most of us can feel the sigh of relief we’re expelling on hearing that the energy price guarantee is protecting us from an eye-watering annual bill of £4,279.

“The energy price cap has spiked alarmingly as wholesale energy prices have skyrocketed. The January bill would have been more than double the price cap in April 2022 (£1,971), and almost four times the level in April 2021 (£1,138).

“But while £2,500 is clearly much more manageable than £4,279, and while the monthly lump sums from the Government take the pain out of the cost for now, there are still an awful lot of people struggling with bills at this level. The Office for National Statistics found 45% of us found it hard to afford energy bills between June and September, which rose to 72% of people on prepayment meters and 60% of renters.”

Even with the Government help, many of us are still going to struggle to keep the heat on as the temperature drops over the winter months. But there is help available.

SIX WAYS TO GET HELP WITH ENERGY BILLS 1 Cost-of-living payments

Pensioners have started receiving the last of the cost-ofliving payments announced last May – with an extra £300 in their winter fuel payments.

Meanwhile, most bill payers will also continue to get monthly payments towards their bills until March as part of the £400 off energy bills for households.

But in the Autumn Statement, Jeremy Hunt announced some new payments. These include another £900 for those on means-tested benefits, £300 for pensioners, and £150 for those getting specific disability benefits.

We don’t have details on the timing of those payments, but it seems reasonable that the

£900 might be delivered in more than one payment, and that those for pensioners and people on disability benefits could come next autumn – to support people when use rises.

Check whether you qualify for a small Universal Credit payment, or for Pension Credit, which open the door to these lump sums.

2 Grants

Your supplier may offer nonrepayable grants to people suffering real financial difficulties. The major energy providers tend to offer them to their customers – including EDF, E.on Next, Shell and Scottish Power. British Gas Energy Trust offers grants to people who are struggling – regardless of whether they are a British Gas customer.

You need to contact your own supplier first to see if they can help and to check their eligibility rules and how to apply.

The process can be difficult, so don’t be afraid to ask for help with it from charities like Stepchange (stepchange.org/0800 138 1111) or Citizens Advice (citizensadvice.org.uk/ 0800 144 8848).

3 Warm-home discount

This is a £150 rebate paid by suppliers at some point between October and March. If you’re eligible, and your provider is part of the scheme, you should receive it automatically in England and Wales.

You’ll qualify if you’re on the Guarantee Credit element of Pension Credit or on specific benefits such as Housing Benefit, Universal Credit or Income Support and have high energy costs.

In Scotland, those on Pension Credit should get it automatically, but others on specific benefits may need to apply.

4 Cold-weather payments

In England and Wales, older people on Pension Credit and those on specific benefits, such as Income Support and Universal Credit, will get £25 for each sevenday period between November and the end of March that the average temperature is below freezing.

In Scotland this has been replaced by a £50 one-off payment made to everyone who qualifies in February, regardless of how low the temperature gets.

5 Your council

The Household Support Fund in England is available from your local council and is designed to help people in really desperate circumstances. They will have specific criteria and an application process, so get in touch and ask.

Find contacts for your council via gov.uk/find-local-council

6 Your energy supplier

If you don’t qualify for help, and you’re struggling to pay your bills, contact your provider sooner rather than later.

Ofgem rules mean they have to offer a number of potential options to help you pay – including an affordable payment plan, payment reductions or time to pay.

It’s worth doing what you can to come to an agreement with them because your provider can move you to a repayment meter if you don’t.

However, if after talking things through with them you still can’t see how you can pay, contact a debt charity like StepChange or Citizens Advice and they can work with you to find a way through it.

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There’s £900 for those on means-tested benefits, and £300 for pensioners