How to get £665 free cash for energy bills as prices go up by 50 percent

According to some forecasts, energy bills could increase by more than 50 percent this year for millions of households at a standard tariff.

Energy UK chief executive Emma Pinchbeck warned that domestic energy prices are set to rise by 45 per cent to 50 per cent because the price cap in April, which limits the amount that suppliers can charge, Will increase It currently stands at an already record-breaking £1,277. But analysts believe it could go up to £1,995 in April.

The increase is due to a major spike in global gas prices, pushed by higher demand around the world.

Martin Lewis, founder of MoneySavingExpert, says a typical household’s energy bill would increase by £600 per year – that’s an extra £50 on your monthly direct debit.

So what can help you with your electricity bill this year? There are plans available that offer free cash for fuel bills up to £665 or more. Here’s what you can get.

Read more: Universal Credit £500 Covid payment – rules for receiving self-isolating cash

Winter fuel payment – £300. So far

Winter Fuel Payments can offer between £100 and £300 to help you pay your heating bills.

Most payments are made automatically in November or December. You should get your money by January 14, 2022. If the money is not paid into your account by that date, contact the Winter Fuel Payment Center on 0800 731 0160.

You are eligible for this payment if you were born on or before 26 September 1955, and have lived in the UK at least one day during the week of 20 to 26 September 2021 – this is called qualifying week.

It is paid automatically to people who receive state pensions or certain Social Security benefits (but not housing benefits, council tax deductions, child benefits, or universal credits). Others have to claim for winter fuel payment before March 31, 2022.

Discount on hot houses – £140

This plan offers a £140 deduction on your electricity bill. If your supplier provides you with both gas and electricity, you may be able to get a discount on your gas bill instead.

Those who use pre-pay or pay-as-you-go electricity meters can receive cash in the form of vouchers.

The Warm Homes Discount is offered to pensioners who enjoy the Guaranteed Credit element of the Pension Credit and who are on low income and receiving certain state benefits.

Electricity suppliers decide who can get the discount and many have now closed applications for this winter so be sure to check now.

Domestic Support Fund – £200. So far

A total of £500 million was assigned by the UK government to local councils and returned to the administration when the Domestic Aid Fund was launched in the autumn of 2021, just as the Universal Credit cut took effect.

Intended to hand over cash to those most in need, including grants for food, clothing and utilities.

Birmingham City Council was awarded £12,791 million. As part of the same, it has given £4 million to Birmingham Voluntary Services Council (BVSC) to provide grants to all age groups and families through existing welfare support channels.

The council said it would distribute financial payments in the region of £100 per family, with a maximum payment of £200, which would reach 17,500 to 35,000 households across the city.

Adult social care will receive £850,000 which will include emergency fuel payments.

Clerk Sharon Thompson, a cabinet member for Children and Vulnerable Families, said: “While it is good to see this funding available, we should not live in a society where it is needed. We are seeing many families struggling and the pandemic has only made things worse. I will continue to give government attention to how their decision-making affects local families. The voluntary sector has done a great job of helping families in need and I know they will continue to help us.”

Clare Paulett Hamilton, cabinet member for adult social care and wellbeing, said: “Winter can be incredibly difficult for some families and it is fitting that they are supported through the difficult times.”

Ask your local council or councilor what is available in your area.

Cold weather pay – £25 per week

This payment is dependent on weather conditions, so it is not fixed. But during the previous period – from November 2020 to March 31, 2021 – around £100 million was paid in total across the UK.

Cold weather payments begin when average temperatures are forecast to reach or remain below freezing for seven consecutive days at the weather station associated with your area.

some 13,000Payment in cold weather has already started11,000 people have benefited from this winter. Money is paid directly into accounts within 14 days.

Cold weather payments are typically available on the following benefits:

  • pension credit
  • income support
  • income based job seekers allowance
  • Income Related Employment and Support Allowance
  • universal credit
  • support for mortgage interest

To qualify for payments, people with Universal Credit must also:

  • be unemployed, not employed or self-employed
  • have a health condition or disability and have limited capacity for work (with or without work-related activity); or a child under five years of age living with them

You can check whether the payment is due or not by typing your postcode in Sarkari Online Cold Weather Payment Checker.

Age UK has called on the government to offer an additional one-time payment of £50 to all those who are eligible for cold-weather payments after a survey found that 45 percent – ​​or about seven million People – worried about staying warm in the winter months.

Is the government going to reduce VAT on electricity bills?

The chief executive of trade body Energy UK said the government could cut every household’s bill by £90 by cutting taxes or VAT.

But Prime Minister Boris Johnson said removing VAT from domestic fuel bills is a “blunt tool”.

Speaking at a Downing Street briefing, Mr Johnson was asked about an article he wrote for The Sun in 2016 in which he argued that “if we leave the EU, energy bills for everyone will be lower”. .

Mr Johnson said: “It is a bit paradoxical that it is now being promoted by people who really wanted to stay in the EU and still do when it would be impossible to distribute within the EU.”

On rising energy bills, he said: “We will continue to hear from businesses and consumers about reducing energy costs, and in the meantime, there are all kinds of things we can do to help people and I appreciate the difficulties.” I do that people are facing problems due to the increase in the price of gas.

“We need warm household rebates, a £140 waiver on energy bills, winter fuel payments, covering 11.4 million pensioners and cold weather payments, as well as a £500 million contribution through our local government to help those in need. Got it for those who need it. Most.”

He continued: “I am not ruling out further measures and you are absolutely right to draw attention as I did in the piece that lies in the freedom to regulate our own VAT. The rationale is that It’s a bit of a blunt instrument. And the difficulty is that you also cut fuel bills for a lot of people who probably don’t get the direct support that we need to give it.”

According to HMRC data, the VAT cut on fuel bills would have cost the government around £1.7 billion last year.

Read more: New DWP cold climate allowance proposed for 17 weeks of winter – how much will it be?

Shadow Chancellor Rachel Reeves said: “Boris Johnson promised to cut VAT on household energy bills not once but three times during and after the Brexit referendum campaign.

“Yet now he’s happy to go back on his word, and is trying to shore up the waters on a change that will help ease the burden on homes facing rising electricity bills.

“It is one broken promise after another from a prime minister distracted by his own scandal and incompetence.

“Labor will remove VAT from household energy bills this winter to help families facing rising costs.”

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