On Thursday Chancellor Rishi Sunak announced a support package worth £15 billion which will see people given hundreds of pounds in the coming months. Everyone in the country will get £400 to help with their energy bills following the news that the energy price cap could rise to £2,800 in October.
Rising energy costs, increases to National Insurance and council tax, and price hikes in supermarkets have left many fearing they could be plunged into poverty in the next few months. The chancellor also announced that benefits will be 'uprated' in September, while the government will also introduce a windfall a tax on 'extraordinary profits' by oil and gas companies.
The amount of money you get will depend on whether you are on benefits, have a disability or other criteria, so we've broken down all the financial support that is currently available in Wales.
Read more: Wales to lift final remaining Covid laws from Monday
£400 off energy bills
Households will get £400 of support with their energy bills through an expansion of the Energy Bills Support Scheme. As well as doubling the £200 of support announced earlier this year the full £400 payment will now be made as a grant, which will not be recovered through higher bills in future years as had been previously announced.
Energy suppliers will deliver this support to households with a domestic electricity meter over six months from October. Direct debit and credit customers will have the money credited to their account while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
£650 one-off payment
People on the lowest income households will receive a £650 one-off payment. It will apply to households on universal credit, tax credits, pension credit and legacy benefits. Households will receive this in two lump sums, with one paid from July and another in autumn.
The government has said the payment will be tax-free, will not affect the benefit cap and will not affect existing benefit awards.
£300 for pensioners
Pensioner households will receive a one-off £300 'pensioner cost of living payment' later this year. Pensioners have to get the winter fuel payment to be eligible, and the £300 will be added to this benefit when it is paid in November or December.
£150 for those with disabilities
People on disability benefits will get an extra £150 payment on top of other government help they receive. The payment will be made from September and will be given to people with the following benefits:
- disability living allowance
- personal independence payment
- attendance allowance
- Armed Forces independence payment
- constant attendance allowance
- war pension mobility supplement
Other council support
Mr Sunak also announced a £500 million increase for the Household Support Fund delivered by local authorities, extending it from October until March 2023 and bringing the total Household Support Fund to £1.5 billion. Full details of how this will be given to people are yet to be finalised, by a HM Treasury spokesperson has confirmed Wales will receive its proportionate share of the funds in due course via the Barnett formula, which is how the Treasury calculates the annual block grants given to the devolved governments.
£150 cost of living payment
Earlier this year Rishi Sunak a £150 council tax rebate for people in England living in properties in Band A to Band D for council tax.
The Welsh Government later confirmed it would offer a £150 cost of living payment to all households who live in properties in council tax bands A to D, as well as recipients of the Council Tax Reduction Scheme in all bands. However, it has been left up to each individual council to decide how and when it will administer the payments.
The payments are currently being rolled out, and if you pay your council tax by direct debit you should either have already received the money, or will receive it in the coming months. If you don't pay by direct debit, you may need to fill out a form on your council website. To find out how your local authority is rolling out the scheme click here.
Winter fuel payment
The winter fuel payment is an annual, tax-free sum of up to £300 paid by the UK government to eligible households during winter. The support is intended to help those over the state pension age pay their heating bills during the coldest months and most payments are made in November and December.
Earlier this year the Welsh Government announced the payment will be increased from £100 to £200 this year as the cost-of-living crisis intensifies. You can find out more about that here.
Universal credit and other benefits
If you are struggling to pay bills or on a low income, you might qualify for universal credit or other benefits. First announced back in 2010 and rolled out three years later, u niversal credit replaced many of the older legacy payments such as household benefits and income-based jobseeker's allowance, swapping them out for a six-in-one payment which has been a lifeline for families and those on low income or who are struggling.
You could be able to get universal credit if:
- you’re on a low income or out of work
- you’re 18 or over (there are some exceptions if you’re 16 to 17)
- you’re under State Pension age (or your partner is)
- you and your partner have £16,000 or less in savings between you
- you live in the UK
To find out more about universal credit click here.
For all the latest news and tips on benefits, money-saving and finance straight to your inbox, sign up for our WalesOnline Money newsletter twice a week here.
