In October, energy bills are predicted to rise by an average of £2,800 a year – an increase of over £1,600 a year in just 12 months.
This week, we answer your questions—and explain what support is available.
What help did the Chancellor announce?
Direct debit customers will have money deposited into their accounts by energy firms.
Pre-payment meter customers will get vouchers or automatic top-up. It will be paid in six months.
more than eight million families on means-tested benefits, with universal creditWill receive a lump sum payment of £650.
It will be paid in two lump sums – one in July and the other in autumn.
More than eight million pensioner families will receive an additional £300 lump sum payment. This will be paid for in November and December with a winter fuel payment of £200-£300.
nearly six million people with disabilities Will get paid an additional £150 in December,
And another £500 million has been added to the domestic aid fund, which is distributed by local councils.
Wait, didn’t he announce help earlier?
Yes. In February they announced a £150 council tax exemption for homes in bands A to D., Thousands have been paid but councils have until October to distribute the cash.
Mr Sunak also announced a £200 energy rebate.
It was a debt that families would have to pay. However, they have decided to convert it into a grant and raise it to £400.
What is an unexpected tax?
Help partially a . being funded by unexpected tax On gas and oil companies.
It is a one-time levy imposed by the government on companies.
It is designed to make firms pay more tax when they have profited from something for which they were not responsible.
In this case, it targets energy suppliers who have enjoyed sky-high profits as a result of rising global commodity prices, while customers struggle with rocketing bills.
Mr Sunak announced a £5bn temporary windfall tax of 25 per cent on oil and gas companies to help fund his support package.
But to ease the pain, he is offering tax relief to firms investing in oil and gas extraction in the UK. The money raised from the tax will be returned to the struggling families.
Why are energy bills rising again? I thought wholesale prices had dropped?
The energy price limit increased from £1,277 per year to £1,971 in April to an additional £694 for 22 million households.
Experts now estimate the bill will rise to an average of £2,800 a year in October. The price range is based on what the wholesale price is expected to be in the coming months.
This means that even if prices have fallen, the limit will go up if the regulator thinks that wholesale costs will be higher in winter.
Is there any point in getting a certain deal?
Could save hundreds by locking the houses fixed rate energy tariff instead of being at the default rate. But now it is not so.
Currently the cheapest fix deal is around £900 more price range,
According to Uswitch, the cheapest fix is currently £2,570 per year from British Gas.
But some people still want to fix, because they want certainty over their bills.
Justina Miltiente, Head of Policy at Uswitch, said: “Keep a close eye on the market and do regular comparisons to see what deals are being offered. Sign up for alerts to make sure you’re notified when a good deal arrives.”
Will reducing my usage help?
Yes, taking the deduction will lower your bill — but there’s only so much you can do.
And because of the permanent fee, unfortunately you can’t reduce your bill to zero.
Some households have resorted to drastic measures like turning off the fridge to try and save energy use but this is a health risk and should be avoided.
There are steps you can take such as turning off appliances on the wall instead of in standby mode and taking a short shower.
What help can I get now?
Many energy suppliers have tough plans for those struggling.
Bulb is giving up to £140, British Gas up to £750, and Octopus up to £500.
You may also be able to get help from your local council through the government’s Domestic Assistance Fund.
What if I can’t pay my bill?
If you’re struggling with bills, don’t stick your head in the sand.
Contact your supplier — it will offer you a payment plan. Some firms will contribute to your bill if you are in debt.
Loan charities like StepChange and National Dateline can offer advice. Use Turn2U’s Benefit Calculator to see if you are entitled to any additional assistance.
What if I find that there is a mistake in my bill?
It is important that you do regular meter readings to make sure you are being charged correctly, or your energy provider will bill you based on estimated usage.
If you think your bill is incorrect, contact your provider with up-to-date readings. If the problem is not resolved, make a formal complaint.
You can also approach the Energy Ombudsman if you are unhappy. The free online tools at Resolver.co.uk can help you handle a complaint.