From October, a series of financial changes will affect millions of households. Keeping track of these changes, who they impact and when can be challenging.
As winter approaches, the Government traditionally begins to offer support to the most financially vulnerable households. However, other changes may result in people losing money, forcing families to tighten their budgets just as they start to use their heating more and begin planning for Christmas, the costliest time of year.
Some of these financial changes will predominantly affect low-income households, such as those on benefits, while others will have an impact on pensioners. Here’s a rundown of some of the changes you can expect in the coming weeks. , reports Birmingham Live.
Energy bills
In another blow to millions of households, energy bills are set to rise again from October. The regulator Ofgem has raised the Energy Price cap, which means average bills will increase by £149 annually.
The speed at which households will feel the effects of this increase depends on how they pay their bills. Those who pay by direct debit may not see an immediate increase, but suppliers are likely to raise bills further in the future.
Winter Fuel Payments
Winter Fuel Payments, which can be worth up to £300, were previously given to all pensioners. However, they are now being discontinued for everyone except the poorest.
This year, only those receiving Pension Credit and some other benefits will be eligible for support. Charities have raised concerns that this could leave approximately two million pensioners who narrowly miss the qualifying threshold struggling to cope this winter.
Compounding the issue, hundreds of thousands of pensioners fail to claim Pension Credit despite being eligible, meaning they risk missing out on winter fuel money to which they are entitled.
Warm Home Discount
The Warm Home Discount scheme, which provides some of the poorest pensioners and households with a one-time £150 reduction in their bills during winter, is set to launch again from October.
The discount can be applied at any point between October and March, with energy companies deciding when to implement it. Pensioners who receive the Guarantee Credit element of Pension Credit qualify, as do some people on benefits like Universal Credit if they also have high energy costs.
This is determined by energy companies. Those who qualify for support will receive letters.
Household Support Fund and Cost of Living Payments
Local councils will be making cost of living payments through the Household Support Fund (HSF). The fund, which is financed by the Government, has been confirmed to extend into the winter.
Some councils may launch their funds from October, though others may not do so until closer to Christmas. Households are advised to check their local authority’s online cost of living support pages for full details.
This is where applications can be made once the fund opens. Typically, applicants must demonstrate that they are experiencing financial hardship and finding it difficult to afford basic necessities such as food, gas, and electricity.