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What has the UK Government done to help the cost of living?

The UK government has put in place several measures to help with the rising energy costs. By the end of 2022, with rising cost, it is estimated that the energy price cap will see energy bills rise to £3,000 per year for the average household. Which does not follow the trend of the national living wage.

This is a significant increase of £1,700 ( a 76 per cent increase) from the past year when household bills were typically much lower.

Rising Living Costs

Most households are now facing a decline in living standards, with average wages failing to keep up with inflation. Poorer households are being hardest-hit by rising costs, however, due to the fact that low income households spend the largest proportion of their income on expenses like energy bills.

Government Support towards rising prices

The government has several policies in place to help with the rising cost of living, especially when it comes to energy.

£150 Council Tax Rebate

The government has also introduced a council tax reduction in the form of a £150 rebate to combat living pressures for households in England. This rebate is available to any households that are in council tax bands A to D and should have been received for people that pay by direct debit.

If you have not received a council tax rebate yet, you should contact your local council.

£400 Grant towards energy bills

Government support will provide a £400 grant which will be paid directly into everyone’s energy accounts. This doesn’t need to be paid back and will help to offset some of the rising energy costs. The £400 payments will start to be made in October.

Means-Tested Benefits & Low Income Households (Universal Credit, Child / Working Tax Credits)

The government has also put in place another measure to help those on low incomes. If you are claiming Universal Credit or Child / Working Tax Credits, you will be eligible for an additional payment of £650 towards housing costs.

This will be paid in two instalments, once in Summer and the final payment in Autumn.

Disability Benefits (Personal Independence Payment, Disability Living Allowance)

The government has also announced that disabled people in receipt of Personal Independence Payment (PIP) or Disability Living Allowance (DLA) will receive an extra £150 to help with bills. This is as well as the £400 that everyone will receive.

People in receipt of Pensions

As well as the points listed above, the government announced that people who receive pensions will receive an extra £300 to help with costs. This doesn’t take into account that pensioners also receive between £100-£300 per year from the Winter Fuel Payment scheme to combat the increase due to cold weather.

If you feel you are likely to struggle with your bills there are a number of things you can do to help lower your costs. The government has also launched a website that