Everything you need to know about the government's energy support
The energy price cap currently sets energy rates for the marjoty of customers. It'll stay at its current rate until the end of the year when it's expected to increase slightly.
While the price cap is lower than the Energy Price Guarantee (EPG) that governed our bills last winter, your bills may not feel much different.
That's because the £400 energy discount for electricity customers (the EBSS), that we received in monthly installments between November 2022 and March 2023, isn't set to be repeated this winter.
The price cap limits the price of a single unit of energy for customers paying for variable energy tariffs.
As of 1 October 2023, it means that a 'typical household' using a medium amount of energy and paying by direct debit would pay £1,874 per year, or around £156 per month.
Find out how Ofgem determines what counts as a 'typical' household and how that compares to your own energy usage in our guide to how to estimate your energy use.
Those on means-tested benefits will received additional top-up cost of living payments from government this winter.
Keep reading to find out what support payments there are for those in vulnerable situations, how the money will be paid to you and what other help is available if you're struggling to pay your energy bills.
For more help with the increasing cost of living, head to our money-saving advice.
Are you worried about your finances?
The energy price cap: a limit on energy unit prices
Your bills are limited by the energy price cap if you're on a standard variable tariff. You might also hear this type of tariff referred to as 'out of contract' or 'default'.
The energy price cap doesn't apply to you if you've signed-up to a fixed term tariff.
Energy regulator Ofgem sets the level of the price cap and changes it every three months.
The headline figure of the price cap (£1,834) is based on a typical household which uses a medium amount of gas and electricity and pays by direct debit. Exactly what you pay depends on how munch gas and electricity you use, where you live, how you pay and the type of meter you have.
Find out more by reading our guide to what is the energy price cap.
Additional cost of living payments for vulnerable groups in 2023
There are still some cost of living payments to be made this winter, if you qualify.
£900 for those receiving means-tested benefits in 2023
The lowest income households in the UK will each receive a £900 cost of living payment in spread out over 2023 and early 2024.
To be eligible, you must be receiving certain means-tested benefits. This includes Universal Credit, tax credits, pension credit and other means-tested benefits.
The money will be paid directly into people’s accounts from the Department for Work and Pensions (DWP) or HMRC in three payments. The first was made in spring 2023. The second is during autumn 2023 and the third will be during spring 2024.
£150 for those receiving non-means-tested disability benefits in 2023
People who receive non-means-tested disability benefits should have received a £150 disability payment during summer 2023.
Any disabled people who also get means-tested benefits can receive both the £900 payment above and this £150, bringing your total additional payment in 2023/24 to £1,050.
Up to £300 extra for pensioners receiving Winter Fuel Payment
Pensioners who currently receive the government’s Winter Fuel Payment – set up to help cover the costs of energy bills during the colder months – should get £150 or £300 during winter 2023/24.
To be eligible for the Winter Fuel Payment, you must be born on or before 25 September 1957. Payments are between £100 to £300, depending on your age and circumstances.
Those on lower incomes who claim pension credit will also receive the £900 as part of the means-tested benefits package above.
Read more: Find out what help is available if you're struggling to pay your energy bill.
When will I get my means-tested cost of living payment?
The first part of the government’s £900 cost of living grant (of £301) was paid during April and May 2023. The second payment of £300 is during October and November 2023 and the third payment of £299 will be in spring 2024.
The first thing to check is whether you are eligible. For each payment you must have been entitled, or later found to be entitled, to at least one of the following benefits during a specific qualifying period. For the autumn payment this was 18 August to 17 September 2023:
- Universal Credit
- Working tax credit
- Pension credit
- Child tax credit
- Income-based jobseeker’s allowance
- Income-related employment and support allowance
- Income support.
If your circumstances are more complex, you may have to wait longer for your payments – for example, if you applied for benefits within the qualifying time period but your application has yet to be approved by the DWP.
Another reason for a longer wait might be if you've changed your bank details but haven't informed the DWP. In this case, the payment may be sent to the wrong account and therefore rejected.
If this happens, the DWP should follow up with you. However, if you’re unsure, get in touch with the DWP directly and provide the correct details to prevent further delay.
If you only receive tax credits, HMRC will let you know about payment and eligibility dates for each cost of living payment and DWP will pay in the later part of the period it makes its payments to others that are eligible.
Why have I not received my cost of living payments?
If you haven't received the cost of living payments you think you're eligible for, and receive means-tested benefits, contact HMRC to find out when you can expect it.
You can report missing cost of living payments to HMRC online.
How you'll get your cost of living payments
You don’t need to apply for the payments, and they should be automatically paid into the same bank account that you receive your tax credits into. Look out for the words ‘HMRC COLS’ on your bank statement or in your online banking app.
Everyone in each category who is eligible for the money should get it around the same date but the time that it lands in your bank account is dependent on your bank. Money added to your bank account may be available sometime after midnight on the day it is due, usually in the early hours. However, some banks deposit money into your account the afternoon or evening before so you can withdraw it before midnight on the day it is due.
Watch out for scammers
Scammers have been using the cost of living crisis as a means of duping people into making payments and/or handing over their bank details, so make sure any communication you receive purporting to be from from DWP, your energy supplier or any other organisation is legitimate.
The government will not ask for your bank details, so watch out for any communication that suggests otherwise.
Sign up to our free scam alerts service to hear about the latest scams and tips to avoid them.
Other cost of living help
Other schemes that might be able to help you meet the costs of your energy bills include:
- The Household Support Fund helps people in England who are vulnerable or cannot afford the cost of essentials, including energy bills. Local councils run the schemes and have different eligibility criteria. Some let households apply directly, others share out funding via local charities and community groups. Check with your council what support is available.
- The Warm Home Discount gives £150 off your bill if you get the guarantee element of Pension Credit. Others can get it too if they meet their energy supplier's criteria.
- The Cold Weather Payment gives extra financial support when temperatures are below zero for seven days in a row. You'll need to get qualifying benefits to be eligible.
Find out about other home grants and how to get them.
This article was first published on 26 May 2022 and has been regularly updated since then. It was last updated on 2 November 2023.
