Changes to energy prices

You've probably noticed your energy bills going up. But it's important to know why this is happening and what you can do to stay on top of increasing costs. 

Can I get help paying my energy bills?

If you're finding it hard to keep up with energy payments or you're worried you won't be able to afford the energy you need this winter, you might be entitled to financial support.

Warm Home Discount

This is a one-off payment to help with the cost of energy over winter. It's usually added as credit to your electricity bill. This winter (2022-23), it's rising from £140 to £150. It's likely you're entitled to this if you or your partner receive the Guarantee Credit part of Pension Credit.

We have more information about the Warm Home Discount scheme.

Winter Fuel Payment

You could be entitled to an annual one-off payment of £100-£300 depending on how old you are, who you live with and any benefits you receive. This year (2022-23), eligible households will get an extra £300 top-up to help with the cost of living. There's more information about this below. 

If you're over State Pension age - which is currently 66 years old - and receive the State Pension then you should be paid automatically. Payments are usually made between November and December.

We have more information about Winter Fuel Payments.

What other financial support is available?

The Government has announced measures to help with rising energy costs.

Money off energy bills

All electricity customers will get £400 off their energy bills between October 2022 and April 2023. This is a grant, not a loan – so you don't have to pay this money back through future bills.

If you're a pre-payment customer, you will receive a voucher or have the money applied as credit to your meter.

Council Tax rebate

Depending on the Council Tax band of property, you may be entitled to a non-repayable £150 from your council. Payments will be made from April and you'll need to make a claim unless you pay your bill via direct debit, in which case you'll be paid automatically. Find out more about the Council Tax rebate. 

One-off payments

This year (2022-23), you may also be entitled to one or more lump-sum payments. These are:

• a £300 Pensioner Cost of Living Payment for households that receive the Winter Fuel Payment. This is a top-up to your Winter Fuel Payment in November/December. 
• a £650 Cost of Living Payment for households on means-tested benefits, such as Pension Credit and Universal Credit. You'll be paid in two instalments if eligible. Your eligibility for the first instalment will depend on whether you were entitled to certain benefits – Universal Credit, income-based JSA, income-related ESA, Income Support or Pension Credit – between 26 April 2022 and 25 May 2022. 
• a £150 Disability Cost of Living Payment for those receiving disability benefits, such as Attendance Allowance. To get this payment in September, you must have a successful claim for a disability benefit in progress on 25 May 2022.

None of these payments are taxable and they won't count towards the benefit cap or affect your benefit entitlement.

Household Support Fund 

This is a payment to help those considered most in need with the rising cost of food, energy and water bills. Each local council decide their own eligibility criteria – though money should be specifically set aside for older people. Contact your council if you want to know more. 

Can I get support from my energy supplier?

If you're finding it difficult to keep up with energy bills or you owe money to your energy supplier, your supplier has a duty to help.

You can ask your energy supplier for:

• a review of your payments or debt repayments
• payment breaks or reductions
• more time to pay your bills
• access to hardship funds
• Priority Service registration.

You may be able to register for Priority Services depending on your circumstances, this includes if you're over State Pension age or you're living with a disability. This gives you access to a range of support, including priority assistance in an emergency, advance notice of planned power cuts and help with prepayment meter access. 

Some energy suppliers have their own special funding schemes or provide support through national schemes such as the Energy Company Obligation. These provide a range of financial support, debt relief, energy advice, and the installation of energy efficiency improvements which can help lower your bills.

Check with your supplier to see what support you might be entitled to.

What do I do if my energy supplier goes bust?

When an energy supplier goes bust, Ofgem assigns a new supplier to take over your account. You don't need to worry, your gas and electricity supply will continue regardless of what happens to your supplier.

Your new supplier should provide you with information about what is happening with your account. But this process can take a few weeks. 

It's worth keeping hold of or downloading copies of your latest energy bills and take photos of your latest meter readings for reference. 

Any customers that were in debt with their previous supplier will still have to repay this and any customers who had been in credit with their supplier should receive a refund. 

You can find more information about which energy suppliers have been affected and who's taking over those accounts.

You should seek advice if you're looking to switch because your supplier has gone bust, as there are considerations if your account was in credit, or if you usually receive the Warm Home Discount. 

Why are energy prices going up?

Increased global demand and wider geopolitical factors have seen the prices of gas increase. This has led some energy suppliers to go bust. 

As a result, Ofgem, the energy regulator, has increased the energy price cap from 1 April 2022. This means customers have a certain level of protection against the rising energy prices, as energy suppliers will only be able to charge default tariff customers so much per unit (kWh) of energy.

However, bills will go up substantially for lots of households. On average, default tariff bills are expected to increase by £693 for the year. For those using a prepayment meter, the average increase will be around £708.

There are fewer tariffs on offer than usual, and switching might not save you any money. It's important to seek impartial advice before switching, for example from the Citizens Advice Consumer Service.