As the weather begins to get chillier and the long nights draw in, many in the UK will be looking anxiously at their energy bills and thinking twice about switching the heating on.
While Ofgem’s energy price cap has been frozen at £2,500 until April and the market turmoil inspired by the autumn’s political chaos in Westminster appears to have been soothed – for now, at least – by the swift appointment of Rishi Sunak as Britain’s new prime minister, for many this will remain a difficult winter.
The UK rate of inflation stands at 11.1 per cent, driving up the cost of goods on supermarket shelves, the Bank of England’s Monetary Policy Committee has set interest rates at 3 per cent and chancellor Jeremy Hunt delivered a bleak Autumn Statement on 17 November.
That saw him introduce a package of tax rises worth £24bn and spending cuts of £30bn in order to plug a massive funding black hole in Treasury coffers and reassure the global financial markets that Britain remains a trusted trading partner.
The Office for National Statistics will release its final inflation rate update of the year on 14 December and the Bank of England will announce its last interest rate review a day later, potentially bringing more grim tidings as the cost of Christmas places a further strain on household finances.
But more cost of living help will also be paid out over the course of the month.
Here is a guide to what you can expect and who is eligible.
Energy discount payment
One of the headline gestures Mr Sunak announced as chancellor back in the spring was that every household would receive a £400 energy bill discount to soften the blow of rising bills resulting from the European energy crisis.
COST OF LIVING: HOW TO GET HELP
The cost of living crisis has touched every corner of the UK, pushing families to the brink with rising food and fuel prices. The Independent has asked experts to explain small ways you can stretch your money, including managing debt and obtaining items for free.
If you need to access a food bank, find your local council’s website using gov.uk and then use the local authority’s site to locate your nearest centre. The Trussell Trust, which runs many foodbanks, has a similar tool.
Citizens Advice provides free help to people in need. The organisation can help you find grants or benefits, or advise on rent, debt and budgeting.
If you are experiencing feelings of distress and isolation, or are struggling to cope, The Samaritans offers support; you can speak to someone for free over the phone, in confidence, on 116 123 (UK and ROI), email jo@samaritans.org, or visit the Samaritans website to find details of your nearest branch.
This replaced a planned £200 universal loan that he announced in February, doubling that figure and turning it into a grant that need not be paid back.
The first £66 instalment was dispatched in October, followed by another in November, with further £67 payments coming this month and then in January, February and March.
Those who pay their bills by direct debit will receive the discount automatically – either as a deduction to their monthly payments or as a refund to bank accounts.
Those who pay on receipt of an invoice will see the discount applied as credit to their energy account every month.
Smart prepayment meter customers will also receive the discount automatically monthly and prepay customers will be sent discount vouchers by text, email or post that they will need to redeem manually.
Pensioner’s cost of living payment
Vulnerable older people who receive Winter Fuel Payments (WFP) will receive an additional £300 as part of the plans Mr Sunak announced in the spring, with some already receiving their payout in November and the remainder due this month.
WFPs are typically worth between £200 and £300, depending on your age and circumstances, and people will be eligible so long as they were over the state pension age – 66 years old or above – between 19 and 25 September this year.
As with other measures, you do not need to apply for them. They will be paid out directly by the Department of Work and Pensions (DWP), in this case added to your existing WFP.
It will appear on bank statements under a payment reference starting off with the recipient’s National Insurance number followed by “DWP WFP” in Great Britain or “DFC WFP” in Northern Ireland.
Cold Weather Payment scheme
This government scheme reopened on 1 November and runs until 31 March 2023, granting £25 to people on low incomes for every seven-day period in which sub-zero temperatures occur.
The money will be paid (depending on the severity of the winter weather) to anyone registered with the DWP to receive a qualifying benefits payment, such as: pension credit, income support, income-based jobseeker’s allowance, income-related employment and support allowance or universal credit.
Warm Home Discount scheme
The government’s winter heating support scheme was also revived on 14 November and runs until 31 March, granting £150 to qualifying recipients to see them through the coldest season, the money taken off their energy bills directly by their supplier.
The money will be paid to help with high energy costs to anyone receiving the following benefits: pension credit, income-related employment and support allowance, income-based jobseeker’s allowance, income support, universal credit, housing benefit or child tax credits and working tax credits.
DWP Christmas bonus
The DWP is also sending out a £10 Christmas bonus to households in receipt of certain benefits this month.
You can see the list of benefits eligible for the payment here, one of which you must be in receipt of in the first week of December to qualify, as well as “ordinarily resident” in the UK, Channel Islands, Isle of Man or Gibraltar.
The payment should appear as “DWP XB” on your bank statement.
Those who are in receipt of state benefits are also reminded that they may receive their payment one working day earlier than usual in December as Monday 26, Tuesday 27 and Monday 2 January are all bank holidays, the latter two to compensate for the fact that Christmas Day and New Year’s Day fall on Sundays this year.
Scottish Child Payment Bridging Payment
In Scotland, thousands of low-income households with children who receive free school meals will be given £260, the final tranche of the support scheme following three previous £130 payouts.
