Helping with the Cost of Living

cost of living

We understand that people are worried about the cost of living challenges ahead. That’s why the Government has announced decisive action to support households, whilst remaining fiscally responsible. We are committed to restoring economic stability, whilst delivering fair and compassionate support for the most vulnerable.

 

***UPDATE: Autumn Statement (17/11/22)***

In the Autumn Statement the announced further support for next year designed to target the most vulnerable households. This cost of living support is worth £26 billion in 2023-24, in addition to benefits uprating, which is worth £11 billion to working age households and disabled people. This additional support announced in the Autumn Statement is on top of the Government’s existing £37 billion cost of living support this year.

New Direct Cost of Living Payments to Households on Means Tested Benefits

More than 8 million UK households on eligible means tested benefits will receive additional Cost of Living Payments totalling up to £900 in the 2023-24 financial year. This includes eligible households receiving the following benefits: Universal Credit; Income-based Jobseekers Allowance; Income-related Employment and Support Allowance; Income Support; Pension Credit; Working Tax Credit and Child Tax Credit.

These will be made in more than one payment. DWP and HMRC will provide further detail on timing of these payments and eligibility dates in due course. These payments will be tax-free, will not count towards the benefit cap, and will not have any impact on existing benefit awards. These payments will be made on a UK-wide basis.

New Cost of Living Payments for Pensioners

More than eight million pensioner households across the UK will receive an additional £300 Cost of Living Payment for pensioners in 2023-24 to help with bills. This is in addition to the means tested benefit and disability payments, if eligible.

DWP will provide further detail on timing of the payments and eligibility dates in due course. This payment will be tax-free and will not have any impact on existing benefit awards. These payments will be made on a UK-wide basis.

New Disability Cost of Living Payments for People on Disability Benefits

Over 6 million people across the UK on eligible ‘extra costs’ disability benefits will receive a further £150 Disability Cost of Living Payment in 2023-24, to help with the additional costs they face. This is in addition to the Cost of Living Payments for households on means tested benefits and pensioner households, if eligible. This includes everyone eligible for: Disability Living Allowance; Personal Independence Payment; Attendance Allowance; Scottish Disability Benefits; Armed Forces Independence Payment; Constant Attendance Allowance and War Pension Mobility Supplement.

DWP will provide further detail on timing of the payments and eligibility dates in due course. This payment will be tax-free and will not have any impact on existing benefit awards. These payments will be made on a UK-wide basis.

Benefits Uprating

The Government is protecting the most vulnerable in society, many of whom face the biggest challenge making their incomes stretch, by increasing benefits in line with inflation. This means that they will rise by September Consumer Prices Index (CPI) inflation – 10.1%.

Uprating working age and disability benefits will cost £11 billion next year. More than 10 million working age families will see their benefit payments rise from April 2023. The Government is also providing support this winter for people who need help now, including money off energy bills and cost of living payments announced in May 2022.

Pensions Uprating

Nearly 12 million pensioners in Great Britain will benefit from a 10.1% increase to their State Pension in April 2023 under the triple lock. The full basic State Pension will increase from £141.85 to £156.20 (£748.75 per year), and the full weekly rate of the new State Pension will increase from £185.15 to £203.85(£975.75 per year). [The average State Pension in payment will increase by over £870 next year].

The Government will also protect 1.4 million of the poorest pensioner households from inflation by increasing Pension Credit by 10.1%, September CPI inflation, in April 2023.

Benefit Cap Levels Increase

In April 2023, the Government will also increase the benefit cap levels in line with inflation by 10.1%. The benefit cap levels will rise from £23,000 to £25,323 for families in Greater London and from £20,000 to £22,020 for families nationally.

The levels for single households without children will rise from £15,410 to £16,967 in Greater London and from £13,400 to £14,753 nationally.

Household Support Fund Extension

For those who require extra support, the Government is providing an additional £1bn to help with the cost of household essentials, for the 2023-24 financial year, on top of what we have already provided since October 2021, bringing total funding for this support to £2.5 billion.

In England this includes an extension to the Household Support Fund backed by £842m, running from 1 April 2023 to 31 March 2024. Guidance and individual Local Authority indicative allocations for this further extension will be announced in due course. Devolved administrations will receive £158 million through the Barnett formula.

National Living Wage Rise

The Government remains committed to ending low pay. From 1 April 2023, the National Living Wage (NLW) will increase by 9.7% to £10.42 an hour for workers aged 23 and over - the largest ever cash increase for the NLW. This represents an increase of over £1,600 to the annual earnings of a full-time worker on the NLW and is expected to benefit over 2 million low paid workers.

Young people and apprentices on the National Minimum Wage (NMW) rates will also see a boost to their wages. Rates will be increased for people aged 21-22 by 10.9% to £10.18 an hour, for those aged 18-20 by 9.7% to £7.49 an hour, for 16-17 year olds by 9.7% to £5.28 an hour, and for Apprentices by 9.7% to £5.28 an hour.

Ongoing Energy Price Guarantee

The Energy Price Guarantee was introduced to shield people from unprecedented rises in energy prices. It fixed the cost of energy so that a typical household pays the equivalent of £2,500 on their energy bills a year, saving the typical household £900 this winter.

From next April, this will change so that the typical household will now pay on average £3,000 a year. This will save around £14 billion next year while still saving the typical household £500 a year off their energy bills, compared to the price of the energy price cap. This change allows us to provide additional support to the most vulnerable through the new Cost of Living Payments.

The Government will also double to £200 the level of support for households that use alternative fuels, such as heating oil, LPG, coal or biomass, to heat their homes.

Energy Efficiency

The most effective way to support households to tackle the long-term higher cost of energy is to support the improvement of the energy efficiency of their homes.

A new Energy Efficiency Taskforce will aim to reduce the UK’s final energy consumption from buildings and industry by 15% by 2030 against 2021 levels. Government has already provided £6.6 billion to improve energy efficiency for households, businesses, and the public sector this Parliament, and is investing an additional £6 billion from 2025 to 2028 to support the new ambition.

Low-income and vulnerable households can currently contact either their local authorities or energy suppliers for the opportunity to receive free energy efficiency improvements, significantly reducing their energy bills.

From April, all homes with council tax bands A-D in England. A-C in Scotland, A-E in Wales in poorly insulated homes will be eligible for government funded energy efficiency measures via the Energy Company Obligation. By contacting energy suppliers, hundreds of thousands of households could save an average of £320.

 

Existing Cost of Living Support Package:

The Government has provided £37 billion of cost of living support this year, including:

  • Help for workers to keep more of what they earn through changes to the personal tax system. The increase to the National Insurance contributions Primary Threshold and Lower Profits Limit is a tax cut for typical employees worth £330 in the first year.
  • Every household with a domestic energy supply will receive a £400 discount on their energy bill this autumn and winter. This is being paid in six monthly instalments, paid from October, and is automatically taken off bills.
  • This year, households on means tested benefits are receiving cost of living payments, totalling up to £650, pensioners a further £300 Winter Fuel Payment and people who receive disability benefits an extra £150.
  • Households in council tax bands A-D in England have received a £150 discount on their Council Tax to help with the cost of living.

Other Cost of Living Support:

  • Income Support:
    • Cutting National Insurance contributions by 1.25%, saving 27.8 million people an average of £330 in 2023-2024.
      • The typical worker will keep £135 more of their own money this year. The cut to National Insurance is effective from 6 November 2022, meaning the typical worker will keep £135 more of their own money this year.
      • Increasing the threshold at which workers start paying National Insurance. We are retaining the increase in the threshold at which workers start paying National Insurance, so workers pay no National Insurance on the first £12,576 of their earnings.
    • Reducing the Universal Credit taper rate to make sure work always pays, and people are rewarded for getting a job. Our changes to the Universal Credit taper rate, and increase to personal allowances, mean recipients of Universal Credit are £1,000 a year better off and are not punished for taking on more work.
    • Doubling personal allowance tax thresholds since 2010, helping people keep more of the money they earn. We have nearly doubled the personal allowance over the last decade, from £6,475 in 2010-11 to £12,570 in 2021-22, saving an average basic rate taxpayer over £1,200 a year. This is the highest basic personal tax allowance of all countries in the G20 and one of the most generous internationally.
    • Protecting the Triple Lock, meaning in April the State Pension will increase in line with inflation, which is the biggest cash increase in the State Pension ever.
    • Find out what benefits and financial support you may be able to get.
    • Increasing the level at which you pay National Insurance
    • If you’re on low income, out of work or cannot work you may be eligible for Universal Credit. The government has made changes to allow working families to keep more of their money.
    • Marriage Allowance allows you to transfer 10% (£1,260) of your personal tax allowance to your husband, wife or civil partner if you earn less than the personal tax allowance, which is usually £12,570.
    • You could get £69.70 a week if you care for someone for at least 35 hours a week and they get certain benefits. You do not have to be related to, or live with, the person you care for to claim Carer’s Allowance.
    • You could get extra money to help with your living costs if you’re over State Pension age and on a low income: even if you have savings or own your own home. Pension Credit provides a vital income ‘top up’ for some of our most vulnerable pensioners. Pension Credit can open up additional other help and support, such as help with housing costs, council tax, heating bills, a free over-75s TV licence and most importantly right now the additional cost of living payments.
    • Help to Save is a savings account. If you’re entitled to Working Tax Credit or you’re receiving Universal Credit, you can get a bonus of 50p for every £1 you save over 4 years.
    • A Child Trust Fund is a long-term tax-free savings account for children born between 1 September 2002 and 2 January 2011. For those who hold an account but do not know the Child Trust Fund provider, or if you’re unsure whether you have one or not, we can help you find out.
    • Contact HMRC as soon as possible if you cannot pay your tax bill. We’re here to help, and you may be able to pay what you owe in instalments, depending on your circumstances and what you can afford.
    • Freezing NHS prescription charges will be frozen for the first time in 12 years to help with the cost of living. You may also be able to get free NHS prescriptions, dental treatment, eye tests and help with other NHS costs.
  • Help with your energy bills:
    • Support and guidance with your energy bills and supplier.
    • Winter fuel payments. In the winter months pensioners can get between £100 and £300 to help pay heating bills. This winter, they will also receive an extra one-off £300 Pensioner Cost of Living Payment, which will be paid as an automatic top-up to the Winter Fuel Payment. Cold weather payments.
    • Delivering Cold Weather Payments, to vulnerable households in exceptionally cold weather. £25 extra a week if you’re getting certain benefits is available during the winter when the temperature is zero or below for more than seven days.
    • Improving energy efficiency in your home.
    • Increasing the Warm Home Discount to £150 and extending eligibility by one-third to three million vulnerable households.
    • It will be cheaper for you to install energy saving materials such as thermal insulation or solar panels with 0% VAT for the next five years, helping to improve energy efficiency in your home and keep heating bills down.
    • You may be eligible for grants to improve the energy efficiency of your home, which could help to reduce your energy bills. Government is investing in energy efficiency schemes which are being delivered by local authoritie
  • Help with childcare costs:
    • You can get up to £500 every 3 months (up to £2,000 a year) for each of your children to help with the cost of childcare.
    • Eligible working families in England with 3 and 4 year old children can receive 30 hours of free childcare a week.
    • Families in England who have 2 year old children and are on certain benefits can get 15 hours of free childcare a week. All families with children aged 3 and 4 can also access 15 hours of free childcare a week.
    • You can claim Child Benefit if you’re responsible for bringing up a child who is under 16 or under 20 if they stay in approved education or training. Only one person can get Child Benefit for a child. It’s paid every 4 weeks and there’s no limit to how many children you can claim for.
    • You may be able to claim back up to 85% of your childcare costs if you’re eligible for Universal Credit, with up to £646 back each month for one child or £1,108 for 2 or more children.
    • Free school meals are available to pupils in England if parents get certain benefits.
    • You can get access to free activities and food for your children in the holidays if they receive free school meals. The programme runs through the Easter, Summer and Christmas school holidays this year. To find out more visit the Education Hub or contact your local Council.
    • If you’re more than 10 weeks pregnant or have a child under 4, you may be able to get help to buy healthy food and milk.
    • National Breakfast Clubs are available with all participating schools will receive a 75% government subsidy for breakfast club provision, with 25% from other funding streams.
    • If you’re more than 10 weeks pregnant or have a child under 4, you may be able to get help to buy healthy food and milk.
    • You could claim a one-off payment of £500 to help towards the costs of having a child.
  • Housing support:
    • You may be eligible for a Budgeting Loan if you’ve been on certain benefits for 6 months. This can be used for household items, rent in advance and travelling costs.
    • You may be eligible to move onto a social tariff if you’re struggling to afford your broadband or phone services.
    • Many water companies run hardship schemes or fund independent charitable trusts which can help you pay your bills.
    • The TV licence fee has been frozen at £159 until 2024. This means households will not see any change to the licence fee until 1 April 2024.
    • You may get help with all or part of your rent. There’s no set amount of housing costs support and what you get will depend on whether you rent privately or from a council or housing association.
    • If you and/or your partner are responsible for paying rent for the home you live in, or if you have a mortgage, Universal Credit may provide help towards the cost. 
    • Housing Benefit can help you pay your rent if you are state pension age or you’re in supported, sheltered or temporary accommodation.
    • You may be able to get support for additional housing costs if you’re already claiming Housing Benefit.
    • Councils run support schemes to help people on low incomes with their Council Tax bill.
    • If you are on certain benefits you may be eligible for Discretionary Housing Payments which provide financial support to help with rent or housing costs.
    • If you’re a homeowner on qualifying benefits, you might be able to get help towards interest payments on your mortgage or loans you’ve taken out for certain repairs and improvements to your home.
    • You may be eligible to borrow up to 95% of the cost of a property worth up to £600,000 thanks to the mortgage guarantee scheme. Contact mortgage providers to see if you’re eligible.
  • Help with transport costs:
    • Fuel duty for petrol and diesel has been cut by 5 pence per litre across the whole of the UK until March 2023. It saves £100 for the average car driver, £200 for the average van driver and £1,500 for the average haulier.
    • You can get up to a third off train fares with a railcard in Great Britain, saving up to £142 a year on average.
    • You may be eligible for a Jobcentre Plus Travel Discount Card if you're on Universal Credit.
    • In England you can get a bus pass for free travel when you reach the State Pension age. If you’re disabled then you may be eligible for a disabled person’s pass if you live in England.
  • Help finding work:
    • The best way to help with the cost of living is to help people into good jobs. 
      • You can search and apply for jobs across a range of industries across the UK through our Find a job website.
      • You can get personalised support, tips and advice to find your next opportunity through JobHelp.
      • You can claim tax relief on work-related expenses, to find out how please visit here.
  • Discounts and offers

To see what support is available and if you are eligible, please visit: https://costoflivingsupport.campaign.gov.uk/

Other Energy Bill Advice:

Essex County Council - Sustainable Warmth Grant:

  • The Sustainable Warmth Grant is being run by Essex County Council to help reduce energy bills, making your home feel more comfortable whilst reducing carbon emissions.
  • This funding is available to households with an income of less than £30,000 per year and living in a property with a low EPC rating of D - G. You may also qualify if you claim certain benefits and funding is available for landlords, those who privately rent and social housing tenants. 
  • The grant can offer up to £10,000 of work and can cover insulation, heating controls, hot water systems, ventilation, solar thermal and PV and lighting. 
  • Applications can be made directly through this form or you can call to make an application on 0800 1968255, Mon - Fri, 9am-5pm. 

More links:

Details of support for Castle Point residents, and delivered by CPBC Council are available here: Cost of Living Support | Castle Point  and £150 ENERGY REBATE DISCRETIONARY SCHEME | Castle Point

Details of support for Castle Point residents, but delivered by ECC are available here: Money, debt and benefits: Household Support Fund - Essex County Council (Southend Council administers the Essential Living Fund on behalf of ECC and all Essex Authorities so CPBC residents should follow the link provided on this page) 

Peabody provides free one-to-one support, information and advice for people who need support with housing-related issues. You can visit their website here: Supporting people in the community | Peabody.

Castle Point Association of Voluntary Services can also be contacted by visiting: CAVS | Castle Point.