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News

Where to get help with the increasing energy costs

A gas burner on a kitchen hob
Photo by Kwon Junho on Unsplash

From Friday 1 April, the energy price cap will increase by 54% for around 22 million customers in the UK.

This means that people on default tariffs (where there is no fixed price guarantee or people who have been moved to a new supplier) will see an increase of £693 if they pay by Direct Debit and an increase of £708 if they are on a prepayment plan.

If you are concerned about how you will pay your energy bills, speak to your energy supplier as soon as possible.

Customers on a fixed deal will see no increases until their bill ends unless their provider fails and they are moved to a new energy supplier.

Financial help available

£200 discount

Earlier this year, the Government announced a £200 ‘discount’ on energy bills. In October 2022 every electricity bill will be discounted by £200 or receive a £200 credit. This discount will be paid back over five years from April 2023 at a rate of £40 per year.

£150 council tax rebate

Homeowners with properties in council tax bands A-D will receive a £150 rebate. The payment will be made directly by your local authority (e.g. Islington or Hackney). If you pay council tax by Direct Debit, you will receive a one-off payment in April 2022.

Discretionary funding for local authorities

A discretionary fund of £144 million is available to local authorities in England to support people on low incomes or who don’t qualify for the £150 rebate.

Warm home discount

If you are on a low income or get the guarantee element of pension credit or some working age benefits, you may be eligible for the Warm Home Discount Scheme. You’ll need to contact your supplier for more information.

Winter fuel payment

If at least one member of your household is above the state pension age you could get between £100 - £300 to help pay your heating bills.

Why are energy prices so high?

The increase is driven by a record rise in global gas prices with wholesale gas prices quadrupling over 12 months. Because gas is used to generate electricity in the UK, this increases the price of electric we use in our homes, workplaces and anywhere electricity is used (e.g. Venues and shops).

When will the price cap increase again?

As wholesale gas prices are still at almost record levels amidst concerns about supply (including but not limited to the war in Ukraine, Brexit and the impact of the Covid-19 pandemic), the price cap will increase still further from 1 October 2022.

More information

If you are concerned about how you will pay your energy bills, contact our Tenancy and Sustainability Team for help and advice on 0300 131 7300 or email customerAccounts@isha.co.uk.

SHINE (Seasonal Health Intervention Network) can also offer help and advice to ensure you get the help you need to reduce utility bills, be energy efficient and stay warm.

You can also contact the National Debtline on 0808 808 4000 or Citizens Advice for free and independent advice.

This article is from the March issue of our monthly residents' newsletter. To sign up for SMS and email alerts for the newsletter, call 0300 131 7300 or email isha@isha.co.uk.

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