Financial experts have issued a warning to Scottish households ahead of the price cap announcement.
Ofgem prepares to announce the new price cap for the period covering October to December on Friday August 26 and important advice has been issued to Scots as 'incredibly challenging' period lies ahead.
Advice Direct Scotland have also warned that half a million people in Scotland are not claiming benefits that are entitled to them, which could serve as a life line over the coming months.
READ MORE- Calls for Government to raise minimum wage to £15 per hour 'as soon as possible'
Energy experts predict that the price cap for October will be £3,550 and then reach £4,000 by January. This comes as Ofgem has changed the way they adapt the price cap and will now be changing it every three months.
They say it's to take away any surprising bills for customers as energy prices fluctuate following the pressure from the Ukraine-Russia conflict.
Scotland’s national advice service, Advice Direct Scotland, runs the energyadvice.scot service with free, impartial, and practical advice on energy bills for anyone in Scotland.
The charity warns of “incredibly challenging” period ahead, with many Scots already struggling with household bills due to soaring gas and electricity costs and inflation.
It encouraged people not to struggle alone and highlighted a range of services and support that is available as half a million people in Scotland are not claiming benefits that are entitled to them.
Advice Direct Scotland also stressed the importance of people ensuring they are claiming all benefits they are entitled to.
Its free online calculator, available at advice.scot, is tailored for Scotland and allows people to check their entitlement to both reserved and devolved benefits.
Colin Mathieson, spokesperson for Advice Direct Scotland, said: “Unfortunately, household bills are going to soar again from October just as winter arrives, and we can expect further rises in January.
“With many people already struggling, we know we are in for an incredibly challenging period ahead. Most of us are doing the small things we can to save energy and bring our bills down, such as turning off lights when they are not in use – but this only helps so much. The key advice to everyone in Scotland is not to struggle alone.
“Our experts at energyadvice.scot are available to provide free, practical advice on the support and assistance available, such as grants. They can also help with understanding energy bills, and make referrals to sources of support for those struggling to pay. This includes the Scottish Government’s Home Heating Support Fund, through homeheatingadvice.scot.
“We would advise anyone struggling with energy costs to reach out to their supplier, who may have a hardship fund that could help. Currently, there are around half a million people in Scotland not claiming the benefits they are entitled to.
“Our free checker tool at advice.scot can be used to check entitlement.”
What support is available for energy bills
Earlier this year, the UK Government announced an energy grant and cost of living payments in a bid to stake the sting out of the rising costs.
£400 energy grant
A £400 energy grant will be issued in installments, with the first payment being issued in October. This does not have to be re-paid.
Energy suppliers will deliver the support from October and this will be added to your energy account - not bank account.
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
There will be a one-off payment of £650 to people who receive DWP benefits. The payment will be made in two instalments, one in July and one in October.
The money will go direct to recipients of Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit, and Pension Credit.
£200-300 for pensioners with Winter Fuel Payment
Pensioner households that receive the Winter Fuel Payment will get a top up of between £200 and £300 in November and December.
The payment will be made on top of other payments that the recipient is entitled to.
£150 for those claiming disability benefits
A one off payment of £150 will be given to those claiming disability benefits, or had already begun an eventual successful claim as of May 25 2022. This is on top of the £400 energy discount.
Anyone who is claiming Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefits, Armed Forces Independence Payment, Constant Attendance Allowance and War Pension Mobility Supplement will get the top-up.
It will also be given on top of the £650 if they also claim other benefits as mentioned above.
As well as the cost of living grants, there may be other options available if you qualify.
Home Heating Support Fund
The Home Heating Support Fund is working with the Scottish Government to help people facing financial difficulties.
The scheme has been extended until March 31 2023, or until funds have been exhausted.
Warm Home Discount Scheme
The Warm Home Discount Scheme: offers eligible households a one-off discount of £140 to their energy bill.
There are 2 ways to qualify for the Warm Home Discount Scheme:
- You get the Guarantee Credit element of Pension Credit - known as the ‘core group’.
- You’re on a low income and meet your energy supplier's criteria for the scheme - known as the ‘broader group’.
How you apply for the Warm Home Discount Scheme depends on how you qualify for the discount.
Low Income Winter Heating Assistance
The Low Income Winter Heating Assistance is a new benefit that will replace the UK Government's Cold Weather Payment.
If the average temperature in your area falls below zero degrees Celsius over a seven day period (between November and March), eligible individuals receive a Cold Weather Payment of £25 (per seven day period) to put towards fuel costs.
Replacing that will be a guaranteed annual winter heating benefit of £50 will be paid for the first time in February 2023 to around 400,000 low income households.
Winter Fuel Payment
You qualify for a Winter Fuel Payment if both the following apply:
- You were born on or before 25 September 1956.
- You lived in the UK for at least one day during the week of 19 to 25 September 2022 - this is called the ‘qualifying week’.
You will get your Winter Fuel Payment automatically (you do not need to claim) if you’re eligible and either get the State Pension or get another social security benefit (not Housing Benefit, Council Tax Reduction, Child Benefit or Universal Credit).
How much you will receive depends on your circumstances.
Child Winter Heating Assistance
To help families with disabled children, there is a payment of £200 to go towards the cost of heating.
You do not need to apply for Child Winter Heating Assistance if the child currently lives in Scotland.
If the child or young person is eligible, you'll be paid automatically into the same account that your Disability Living Allowance for children is paid into.
READ NEXT-
Bulb Energy explains how customers will receive £400 cost of living payment
Who will need ETIAS and when it will come into force for travellers as plans delayed
Mum told 'divorce your husband' after nightmare holiday with their toddler
Freddos return to 10p with company that is 'turning back the clocks to 1994'
