Millions to get help with rising energy costs

Chancellor Rishi Sunak has unveiled a £9.1 billion package of Government support to help millions of households cope with rising energy costs.

All domestic electricity customers will get £200 off their energy bills from October 2022, while households will receive a £150 council tax rebate from April 2022.

The support comes after Ofgem announced the price cap would rise by 54%, equivalent to £693 for those on default tariffs paying by direct debit.

Households will have to repay the £200 in equal instalments over the next five years, while only households in bands A-D will receive the council tax rebate.

Discretionary funding of £144 million will also be provided to support vulnerable people and individuals on low incomes that do not pay council tax, or that pay council tax for properties in band E-H.

Adam Corlett, principal economist at the Resolution Foundation, praised the Chancellor for his "ambitious plan".

He added:

"However, by opting for near-universal support over targeted help for low-income families at the heart of the current cost of living crisis, the number of families in fuel stress is still set to double.

"Households will have to wait until October for the energy bills rebate to actually kick in, and while around one-in-eight of the poorest families could also miss out on support this April as they're not automatically entitled to the council tax rebate."

Talk to us about managing your finances.

Other news articles you might like:

People-focused expertise just a click away

Ready to level up your business?

With our support, we know we can help you reach new heights.