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When are the second cost-of-living payment and £400 energy rebate due? | |
(2 days later) | |
Energy bills are set to rise sharply - prompting calls for the government to offer more help. | Energy bills are set to rise sharply - prompting calls for the government to offer more help. |
Some households received a first payment to assist with the soaring cost of living in July, with a second due in the autumn. | Some households received a first payment to assist with the soaring cost of living in July, with a second due in the autumn. |
Who will get the cost-of-living payment and when? | Who will get the cost-of-living payment and when? |
Two payments totalling £650 are being made to more than eight million low-income households who receive the following benefits: | Two payments totalling £650 are being made to more than eight million low-income households who receive the following benefits: |
Universal Credit | |
income-based Jobseekers Allowance | income-based Jobseekers Allowance |
income-related Employment and Support Allowance | income-related Employment and Support Allowance |
Income Support | Income Support |
working tax credit | working tax credit |
child tax credit | child tax credit |
pension credit | pension credit |
The first instalment of £326 was paid to most people between 14 and 31 July. In a very small number of complicated cases, payments were made slightly later. | |
Another £324 will be paid in the autumn - but the date hasn't been confirmed. | |
Those on tax credits will have to wait longer, as the first payment won't arrive until the autumn, and the second during the winter. | |
The payments are made automatically into bank accounts - usually marked "DWP Cost of Living". | The payments are made automatically into bank accounts - usually marked "DWP Cost of Living". |
People aren't eligible if they receive New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker's Allowance - unless they get Universal Credit. | |
Anyone who thinks they are entitled to the help, but hasn't got it, should contact the office that pays their benefit or tax credits. | |
Those who could miss out include the 850,000 pensioner households which the government says don't claim Pension Credit, which is a gateway to these extra payments. | |
Other eligibility details are outlined here for people in England, Wales and Scotland, and here for people in Northern Ireland. | |
Why are energy prices going up so much? | |
What can I do if I can't afford my energy bill? | |
What about the payment for disabled people? | |
Up to six million people on the following disability benefits will receive £150 from 20 September - potentially on top of the £650 payment: | |
Disability Living Allowance | |
Personal Independence Payment | Personal Independence Payment |
Attendance Allowance | Attendance Allowance |
Scottish Disability Payments | Scottish Disability Payments |
Armed Forces Independence Payment | Armed Forces Independence Payment |
Constant Attendance Allowance | Constant Attendance Allowance |
War Pension Mobility Supplement | War Pension Mobility Supplement |
None of these cost-of-living payments affect the tax you pay, or the benefits or tax credits you receive. | |
Disabled need more help, charities tell Tory rivals | |
How will the £400 energy discount be paid? | |
All UK households will get a grant which will reduce energy bills by £400 from October. | All UK households will get a grant which will reduce energy bills by £400 from October. |
Initially, this was going to be a £200 reduction paid back in instalments over five years. But the discount was subsequently doubled, and no longer has to be repaid. | |
In other words, from October, everyone's energy bill will be cut by £400. This will be applied over six months, with a reduction of £66 in October and November, and £67 every month between December and March 2023. | |
The discount will be made automatically by energy suppliers in England, Scotland and Wales. There is no need to apply. | |
Direct debit and credit customers will have the money added to their account. Customers with pre-payment meters will have the amount applied to their meter, or receive a voucher. | |
Separate arrangements are being made for households in Northern Ireland, which has its own energy market, but details are not yet confirmed. | |
Is the UK doing as much on bills as other countries? | Is the UK doing as much on bills as other countries? |
What extra help will pensioners get for winter fuel bills? | What extra help will pensioners get for winter fuel bills? |
Households that receive the Winter Fuel Payment - which is worth £200-£300 and is paid to nearly all homes with at least one person of pension age - will receive an extra £300 in November or December. | |
That should cover nearly all pensioners across the UK. | That should cover nearly all pensioners across the UK. |
Lower-income pensioners who claim pension credit, will receive the money in addition to the £650 support for those on benefits which is mentioned above. | |
This means a small group of pensioners with disabilities will receive a total of £1,500 when all the payments and discounts are combined. | |
What payments have already been made? | What payments have already been made? |
About 80% of households are already receiving a £150 energy rebate, often through their council tax bill. | About 80% of households are already receiving a £150 energy rebate, often through their council tax bill. |
How it is paid depends whether you pay your council tax by direct debit and where you live in the UK. | |
Some people were given fuel vouchers through the Household Support Fund which is distributed by local councils. | |
Councils have until September to make the payment, but BBC research found that more than three million households in Britain were still waiting on 1 July, including many lower-income households. | |
How is the extra support being funded? | |
A windfall tax - officially called a temporary levy - will be imposed on energy companies (not your domestic supplier) which should raise about £5bn over the next year. | A windfall tax - officially called a temporary levy - will be imposed on energy companies (not your domestic supplier) which should raise about £5bn over the next year. |
Companies which extract oil and gas are making much more money than they were last year. | |
This is partly because demand has increased as the world emerges from Covid, and partly because of supply concerns due to Russia's invasion of Ukraine. | |
Firms which generate electricity may also be taxed more in the future. | |
The levy will cover some, but not all, of the bill for the government, which means it will also have to dip into other funds. | |
Is the government package really worth £37bn? | Is the government package really worth £37bn? |
Will the cost of living keep going up? | |
Prices are already rising at a faster rate than at any time in the last 40 years. | Prices are already rising at a faster rate than at any time in the last 40 years. |
Official forecasters say that the rate is set to accelerate. Prices are not expected to fall next year, but the rate of increase is expected to slow. | |
The big unknown is what will happen to energy bills in the next few years. | The big unknown is what will happen to energy bills in the next few years. |
That depends to a great extent on the war in Ukraine, and its wider impact on energy supplies from Russia. | That depends to a great extent on the war in Ukraine, and its wider impact on energy supplies from Russia. |
Consultancy Cornwall Insight says that the typical domestic customer is likely to pay £3,554 a year from October, then £4,650 a year from January. The typical bill at present is about £2,000 a year. | Consultancy Cornwall Insight says that the typical domestic customer is likely to pay £3,554 a year from October, then £4,650 a year from January. The typical bill at present is about £2,000 a year. |
That is a bigger hit to domestic budgets than had been anticipated when the cost-of-living payments were set. As the prime minister changes, there will be considerable attention on whether additional support will be provided. | |
Why are prices rising so quickly? |