Government announces £400 additional household support amid Cost Of Living Crisis

May 26, 2022 | Electricity & Gas, News | 0 comments

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Chancellor Rishi Sunak has announced additional support to help households across the UK with the rapidly rising cost of living, and specifically record high energy bills. All UK households will be receiving a rebate on their energy bills this winter, with the £21 billion package promising:

  • £400 for all households, and additionally
  • £650 more for the most vulnerable homes
  • £300 more for pensioners
  • £150 more for those on disability benefits

Universal support

For every household in the UK, the previously announced £200 grant for energy bills will be doubled to £400, and it no longer needs to be repaid.


Targeted support

To help the most vulnerable, and those affected the most by the cost-of-living crisis, a series of “targeted support” are to be put in place.

For 8 million households with the lowest income a one-off payment of £650 will be issued in two lump sums, arriving in July and later this Autumn.

A £300 one-off payment will be given to pensioners, and £150 to 6 million people receiving disability benefits.

Together with the £150 council tax rebate measure, the majority of households will receive a total of £550, pensioners will receive £850 and the most vulnerable homes will receive £1,200.

Are you eligible for the £150 council tax rebate? Find out here


Battling the energy crisis

The additional measures will be partly funded by a £5 billion windfall tax collected from big energy firms’ profits.

This news has come at the same time as warnings that the Energy Price Cap, the maximum amount an energy supplier is allowed to charge a customer with standard usage, is expected to increase further by £830 to £2,800 this October, according to Ofgem’s CEO, Jonathan Brearley. The price cap has skyrocketed continuously in the past year, from £1,138 in early 2021 to £1,971 last month.

Over 22 million households have been affected so far, and the fuel poverty gap is set to widen by 15.7% this year with rising energy bills, according to government data.

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