Average energy bills for a typical household are increasing to £3,000 a year from April, when the cap set by the Energy Price Guarantee increases. Hard-up Britons face other bills hikes in April, as council tax is increasing by five percent in many parts of England and mobile and broadband tariffs are also going up.
The Government has announced £824million in extra funding for the Household Support Fund.
People who may be eligible to receive help through the fund include those who are to receive cost of living payments over the coming tax year.
This may include people on qualifying benefits such as Universal Credit, Pension Credit and tax credits.
The money will be allocated from April 1 and will be given to councils in England, who will then determine who should get the money in their local area.
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Mims Davies, DWP minister for Social Mobility, Youth and Progression, said: “The Household Support Fund has already helped vulnerable families across England through these challenging times and I am pleased it will continue to do so for another full year.
“This is just one part of our extensive and targeted £26billion support package, which includes payments worth £900 for millions of people on benefits and additional support for disabled people and pensioners, whilst every household will continue to save money thanks to our Energy Price Guarantee.
“We also know that bearing down on inflation is one of the best ways to help families cope with rising bills, which is why the Prime Minister has made halving inflation this year one of his top priorities.”
The funding will be distributed in a way that prioritises parts of the country with the most vulnerable households.
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People on certain means-tested benefits are to receive a £900 cost of living payment over the coming tax year, with the first instalment in spring 2023.
Britons on disability benefits are also to receive a £150 payment while pensioners are to get a £300 payment on top of the Winter Fuel Payments this coming winter.
Many benefits are also increasing by 10.1 percent in April, including Universal Credit, PIP and Pension Credit.
The state pension is also going up by 10.1 percent, with the full basic state pension increasing from £141.85 a week to £156.20 a week.
Those on the full new state pension will see their payments increase from £185.15 a week to £203.85 a week.
State pensioners on low incomes may want to check if they are eligible for Pension Credit, as this can top up a person’s income by up to £3,500 a year.
Financial journalist Martin Lewis urged Britons on his ITV show this week to check if they are eligible for the support.
He said: “My rule of thumb is that if you are single, with income under £200 per week, or a couple with income under £300 per week, check it out.
“I’m not saying you’ll get it, but it’s worth checking out. The Government website has a calculator, or you could call the Pension Credit helpline.”