Energy Price Freeze Expectations

Britain’s new Prime Minister, Liz Truss, has met with energy firms and her cabinet this week to address the current catastrophic rises in energy costs for UK Households. We understand that mainland UK energy prices will be frozen in the hope to reverse the planned 80% hike in the current price cap (currently £1,971 p/y for a ‘typical’ household, rising to £3,549 p/y from 1st October). 

What’s expected? 

It’s widely reported that a new cap of £2,500 will be set and frozen from 1st October 2022, which will be reduced by the already planned £400 energy grant*, so that’s a real world cost of £2,100 for the average home. Whilst this is a huge improvement on what we were heading towards, it must still be remembered that only 2 years ago, the price cap would have cost the average household around £1,000 p/y and there were plenty of deals on the market to switch to which would have been lower than the price cap. Even at the expected ‘frozen’ energy price cap, we expect around 8 million homes to be in fuel poverty, which is an increase of around 5 million homes from 2020 figures. We believe that no home should ever be in fuel poverty. 

Is there any more help available?

Depending on your circumstances, there could be further help.

£650 cost of living payment.

In May 2022 the Government announced a £650 support package for around 8 Million UK Households who are on means tested benefits but it is not clear whether this support will remain with the new price freeze, we will provide more information as soon as we know more.

Up to £600 winter fuel payment.

This year’s winter fuel payment, for those households with any member aged 66, is worth up to £600 this winter.

£150 for some on disability benefits.

Some who are on certain disability benefits will receive a one off payment of £150 in September. These payments will automatically be made in September for those who qualify. The following benefits qualify:

Armed forces independence payment

  • Attendance allowance
  • Constant attendance allowance
  • Disability living allowance
  • Personal independence payment
  • Scottish disability benefits
  • War pensioners’ mobility supplement

£150 Warm Homes Discount.

All energy suppliers with more than 50,000 customers are required to help vulnerable people pay for their energy over winter. The warm homes discount can help customers receive £150 towards energy bills this winter. Those in England and Wales who qualify will automatically receive this payment from their supplier, if their supplier offers the scheme. For those in Scotland, you will need to contact your energy supplier to apply. 

£25 cold weather payment.

For older people and those on certain benefits in England and Wales. If the weather is forecast to be, or actually, – 0°C or below for seven days in a row between 1 November and 31 March, a payment of £25 is made for each seven day period. This payment is usually automatic. For those in Scotland, this scheme has been replaced by the Low Income Winter Heating Assistance Scheme which provides a flat £50 one off payment to support eligible households through winter months. 

£150 council tax rebate for bands A – D.

This was announced back in February 2022 and many have already received their payments, however if you have not received your rebate, please contact your council. 

Energy Supplier Trusts & Grants. 

Below are a list of energy suppliers who may be able to offer hardship grants along with links to their websites:

British Gas – Up to £1,500 Website 

EDF – Website

E.on Next –Website

Octopus – Website

Scottish Power – Website

Shell Energy – Website

Utility Warehouse – Call 0333 777 0777 

OVO Energy – Website

Free debt advice and support.

We’ll provide more content here soon, but here is a comprehensive list of all support organisations on Money Saving Expert – Website

No information is currently available on whether there will be support for UK Businesses, and it’s important to know that Energy Angels specialises in helping households with advice on energy. 

*If you are on a non smart prepayment meter you will need to contact your energy supplier to receive this grant. 

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