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How will the new support measures for UK energy bills work?




British Prime Minister Rishi Sunak has succumbed to pressure and announced a £15 billion action to help households struggling with energy costs through windfall taxes on oil and gas producers.

While more help would be given to the lower-income brackets, the government has also helped the “middle class” through a variety of universal and targeted measures. FT Money guides you through what help you can get.

What’s new this week?

All UK households with electricity meters will receive a one-time subsidy of £400, which will automatically apply to their bills from October and will not require repayment.

This replaces the previous plan for a “heat now, pay later” plan of £200 that will be recouped over five years.

More than 8 million households using means-tested benefits (including universal deductions, tax credits and pension deductions) will receive a one-time £650 “living payment”, paid in the first tier in July and the first and two tiers in July. You can get more. Second this fall.

It is paid directly by the Department of Labor and Pensions and the HM Internal Revenue Service. This amount is tax-free, does not count toward benefit limits, and does not affect existing benefits.

Over 8 million pensioner households on winter fuel will receive an additional £300 one-time “pensioner living expenses” that will be paid directly this winter.

It is paid per household, not per pensioner, and is in addition to any assistance you are already entitled to, such as pension credits or disability benefits. It is not taxable and does not affect eligibility for other benefits.

The prime minister acknowledged in his speech that not all households eligible to claim pension credit are doing so. If you are unsure of eligibility, use the government verification tool

What about people with disabilities?

A separate £150 “disability living allowance” will be paid in September to those already receiving benefits, including Disability Living Allowance, Individual Independence Allowance and Attendance Allowance.

cost of living measurement

Cost of Living Crisis: Sunak engages in ‘serious redistribution’ to help Britain’s poorest people.

Sunak has announced a windfall for the energy group to fund a £15 billion package for UK households.

The government said this is to account for additional costs such as powering specialized equipment and increasing transportation costs.

Some people with disabilities are also eligible for a main cost of living of £650. However, it has sparked criticism from activists because it is only possible with means-tested benefits.

Dr Frances Ryan, author and disability rights activist, tweeted: “The party has paid people with disabilities a one-time payment of £150 for a crisis cost of living that eliminates the £150 annual warm housing discount for many disabled people. She said “nearly a nerve should be respected.”

When will the £150 council tax refund be paid?

In the UK, all properties in Parliament Tax Band AD are eligible for a £150 rebate in addition to the measures announced today. Many local authorities have already paid this by direct debit in the form of a reverse debit of £150, but households that do not pay by direct debit will have to apply to the local city council to receive it.

Households not eligible for these and other benefits may apply for an additional portion of their local authority’s household assistance funds to help with rising food, energy and water bills. On Thursday, the Prime Minister announced an additional £500m of funding.

I don’t need this money. Can I opt out?

It is not possible to opt out of the £400 subsidy that applies to winter fuel payments, pensioner living expenses or energy bills, but you can donate to charities. The #donatetherebate campaign on social media has led many people to donate to fuel poor charities like the Fuel Bank Foundation and National Energy Action, as well as to fuel fuel such as local food banks, and eligible taxpayers can add a Gift Aid to increase the value of their donation. shows that there is




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