What is the Energy Price Cap?
The Energy Price Cap is set by Ofgem, Britain’s independent energy regulator. Introduced in 2019 to protect households from expensive energy tarriffs, the cap limits how much an energy supplier can charge you for each unit of electricity or gas. The cap is revised four times a year and from July 1st 2023 will fall to £2,074 per year.
How does the Energy Price Cap affect me?
From July 1st 2023 the Energy Price Cap will fall from a peak of £4,279 in January 2023 to £2,074 for an average household with typical energy consumption.
Are energy bill prices actually falling?
Despite recent changes, energy bills have increased by 180% since the pandemic. Although there will be a fall in price, the harsh reality is that households are still paying bills 82% higher than 2021. Energy prices are expected to remain high and not return to pre-pandemic levels anytime soon.
What was the The Energy Bill Support Scheme?
As well as the Energy Price Guarantee (EPG), the government gave every household a £400 discount on their energy bills for Winter 2022 to 2023. For households who pay by direct debit, £66 was applied as credit to every household’s energy bill for six months. For households on a prepayment metre, they would have received a voucher in the mail for £66 that they could then use to top up their account. This ended in March 2023.
What can I do if I am struggling with my energy bills?
- Talk to your energy provider about repayment plans.
- Check if you’re eligible for Universal Credit to access various support, including £150 off your energy bill through the Warm Homes Discount, cheaper broadband and the ‘Help to Save Scheme’.
- Use a free online benefits calculator to see if you are eligible for support. There are £19 billion in unclaimed benefits in the UK each year and you may qualify for additional support during this cost-of-living crisis.
What can energy companies do to support customers struggling to pay their energy bills?
Energy suppliers can support customers struggling with their bills by checking the benefit entitlements of their customers through platforms like Better Off Calculator.
What can councils do to support customers struggling to pay their energy bills?
Councils can support households in their community struggling with high energy bills by identifying residents living in fuel-inefficient homes using data analytics and contacting them on the benefits they are missing out on.
This can be achieved through platforms such as the Low Income Family Tracker (LIFT) to identify people in danger of financial crisis and help them maximise income by taking up the benefits they are eligible for.
Glossary of welfare terms
- Alternative Payment Arrangements (APAs)
- Applicable Amount
- Assessment of Need
- Benefits Uprating
- Better Off Calculator (BOC)
- Child Element
- Council Tax Band
- Council Tax Benefit (CTB)
- Council Tax Reduction Scheme (CTRS/CTR/CTS)
- Department for Work and Pensions (DWP)
- Disability Benefit
- Disability Living Allowance (DLA)
- Disability Premium
- Employment and Support Allowance (ESA)
- Enhanced Disability Premium
- ESA Work-Related Activity Component
- Extended Payments
- Family Premium
- Flat Rate Non-Dependant Deduction
- Guaranteed Award
- Her Majesty's Revenue and Customs (HMRC)
- Housing Association
- Housing Benefit
- Income-Banded Scheme
- Income Support (IS)
- Jobseeker's Allowance (JSA)
- Legacy System/Benefits
- Limited Capability for Work (LCW)
- Limited Capability for Work Related Activity (LCWRA)
- Local Housing Allowance (LHA)
- Managed Migration or Move to Universal Credit
- Maximum Amount (Universal Credit)
- Minimum Income Floor (MIF)
- Ministry of Housing, Communities and Local Government (MHCLG)
- Natural Migration
- Non-Dependant Deduction
- Out-of-Work Benefits
- Personal Independence Payment (PIP)
- Severe Disability Premium (SDP)
- Taper Rate
- Two-Child Limit
- Universal Credit Assessment
- Universal Credit (UC)
- War Disablement Pensions (WDP)
- War Widow's Pensions
- Work Allowance
- Work Capability Assessment
- Work-Related Activity Group Premium
- Work-Related Activity Group (WRAG)