The government's Energy Price Guarantee (EPG), which currently sets consumer energy rates, is set where it is until July 2023, when it's expected that bills will (slightly) drop.
While your energy tariff is likely to be the same in April 2023 and onwards as it was over winter, your bills may seem higher. That's because the £400 energy discount for electricity customers (the EBSS) that was rolled out in six monthly instalments ended in March 2023. That means that to all intents and purposes, energy customers will find themselves paying an additional £67 a month from April 2023.
The EPG freezes unit rates for domestic customers. Its current rates mean that a 'typical' household using an average amount of energy and paying by direct debit would pay £2,500 over a year, or around £208 a month.
It's expected that in July 2023 the Ofgem price cap will drop below the EPG rates. Customers are expected to pay whichever is the lower amount, which means that from July, rates are likely to be dictated by the Ofgem price cap and not the EPG.
Find out how Ofgem determines what counts as a 'typical' household and how that compares to your own energy usage in our guide to how to estimate your energy use.
Those on means-tested benefits received additional top-up payments in 2022. Support for these groups will continue during 2023 with further cost of living payments over the 12-month period from April.
In this guide, we break down the measures the government is rolling out to help households through the cost of living crisis. Scroll down to find out more about:
For more help with the increasing cost of living, head to our money-saving advice.
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The Energy Price Guarantee (EPG) sees the government top up energy bills for all households to account for the enormous rises in wholesale energy prices. It is happening automatically, before you see your energy prices. It means that your energy unit rates are currently lower than they would otherwise be.
For the period from 1 October 2022 until 1 July 2023, the average EPG unit rates are 34p per kWh of electricity and 10.3p per kWh of gas, for those paying by direct debit. If you pay by prepayment they are slightly different.
From July 2023, the government is likely to increase the EPG. However, it's widely anticipated that from 1 July 2023 the Ofgem price cap will drop to rates that are cheaper than the EPG.
If this does happen, people on variable tariffs will pay the cheaper price-capped rates, not the EPG.
Regardless of the type of tariff you're on, you don't need to do anything to receive this support – your energy company applies the EPG automatically to your account.
The rates listed below have been in place from 1 October 2022 and will continue to apply until 30 June 2023.
The EPG does not affect standing charges, which are set by Ofgem's price cap. They are different depending on where you live. The averages for these are currently 52.97p per day for electricity and 29.11p per day for gas if you pay by direct debit, and 58.08p per day for electricity and 37.8p per day for gas if you pay by prepayment.
As well as the EPG, the Energy Bills Support Scheme (EBSS), originally announced in February 2022, was rolled out since October 2022 as planned.
It gave all households with an electricity tariff a £400 discount on their bills over winter. This was paid in instalments from October 2022 to March 2023, and it won't need to be paid back.
Energy customers in Northern Ireland are also getting the same discount through the Northern Ireland Energy Bills Support Scheme, plus £200 from the Alternative Fuel Payment scheme, regardless of how they heat their home.
If you live in a park home or houseboat, or are otherwise off the mains electricity grid, you are also receiving equivalent support of £400 for energy bills.
Read more on: How to claim your Alternative Fuel Payment money if you are off the traditional energy grid.
The EBSS was paid in instalments, with £66 paid in October and November 2022, and £67 in December 2022, and January, February and March 2023.
Read more about cutting down your energy usage, with our guide to 10 ways to save on your energy bills.
Targeted support for pensioners, those on low incomes and those with disabilities was also made available in 2022.
In a budget announced in November 2022, Chancellor Jeremy Hunt confirmed that people eligible for this support will receive further cost of living payments from April 2023.
The lowest income households in the UK will each receive a £900 cost of living payment in 2023, the government has announced.
To be eligible, you must be receiving certain means-tested benefits. This includes Universal Credit, tax credits, pension credit and other means-tested benefits.
The money will be paid directly into people’s accounts from the Department for Work and Pensions (DWP) or HMRC in three payments over the year starting in spring 2023. The second will be during autumn 2023 and the third will be during spring 2024.
In 2022, people in eligible groups were paid £650 of additional top-up support, separated into two payments in July and November. The first payment of £326 started being paid to the qualifying 8m UK households from 14 July. The second payment of £324 followed in November.
People who receive non-means-tested disability benefits were given an extra one-off cost-of-living payment of £150 in September or October 2022. This group will receive another £150 disability payment during summer 2023.
Any disabled people who also get means-tested benefits can receive both the £900 payment above and this £150, bringing your total additional payment in 2023/24 to £1,050.
Pensioners who currently receive the government’s Winter Fuel Payment – set up to help cover the costs of energy bills during the colder months – were given an extra one-off sum of £150 or £300 from November 2022. This group will receive another £150 or £300 during winter 2023/24.
To be eligible for the Winter Fuel Payment, you must be born on or before 26 September 1956. Payments are between £100 to £300, depending on your age and circumstances.
Those on lower incomes who claim pension credit will also receive the £900 as part of the means-tested benefits package above.
Read more: Find out what help is available if you're struggling to pay your energy bill.
People will start receiving the first part of the government’s £900 cost of living grant, which will be £301, during spring 2023, with the second payment of £300 during autumn 2023 and the third payment of £299 during spring 2024. Exact dates haven't been confirmed yet.
The first thing to check is whether you are eligible. For each payment you must have been entitled, or later found to be entitled, to at least one of the following benefits during a specific qualifying period. These are yet to be announced:
If your circumstances are more complex, you may have to wait longer for your payments – for example, if you applied for benefits within the qualifying time period but your application has yet to be approved by the DWP.
Another reason for a longer wait might be if you've changed your bank details but haven't informed the DWP. In this case, the payment may be sent to the wrong account and therefore rejected.
If this happens, the DWP should follow up with you. However, if you’re unsure, get in touch with the DWP directly and provide the correct details to prevent further delay.
If you only receive tax credits, HMRC will let you know about payment and eligibility dates for each cost of living payment and will pay you shortly after the DWP makes its payments to others that are eligible.
You don’t need to apply for the payments, and they should be automatically paid into the same bank account that you receive your tax credits into. Look out for the words ‘HMRC COLS’ on your bank statement or in your online banking app.
Everyone in each category who is eligible for the money should get it around the same date but the time that it lands in your bank account is dependent on your bank. Money added to your bank account may be available sometime after midnight on the day it is due, usually in the early hours. However, some banks deposit money into your account the afternoon or evening before so you can withdraw it before midnight on the day it is due.
If you still haven't received any of your 2022 cost of living payments and receive means-tested benefits, contact HMRC to find out when you can expect it. You can report missing cost of living payments to HMRC online.
In England, Scotland and Wales, the £400 energy discount was paid in six instalments. Households saw £66 knocked off their energy bills in October and November, and £67 a month from December to March 2023.
For most people, the discount has been applied to your energy account automatically without you having to do anything to receive it.
The exception is in those with 'non-smart' traditional prepayment meters. They have received either 'Special Action Messages' or vouchers from their supplier in the first week of each month, via text or email, or in the post. The voucher is redeemable at top-up points, such as a local Post Office, and the discount is credited to the meter key. It's therefore important your supplier has your current, up-to-date contact details.
This has raised concerns, as these kind of meters are often used by the poorest and most vulnerable households, and being paid the discount in this way could leave them more exposed to fraudsters.
Please be aware that you will never be asked for personal information such as bank details to receive this payment, as you get a voucher to use where you normally top up your meter.
The vouchers will expire in June 2023, so it's important to claim them before then. Here's how to redeem EBSS prepayment vouchers.
Steps are being taken to ensure that vulnerable groups that are more likely to pay bills by cash and cheque, and who may not have already registered their bank details, are identified and don't miss out on the government's cost of living support.
The Confirmation of Payee service – a banking security measure that helps to make sure payments aren't sent to the wrong bank or building society account – is working with payment system provider PayPoint to ensure these customers are given alternative ways to access the funding, and are not excluded.
Landlords are legally obliged to pass on the EBSS discount to their tenants 'in a just and reasonable way'.
If you are a tenant paying an energy supplier directly for your electricity, you should have received the £400 electricity bills discount in monthly instalments via your energy supplier. If you pay by direct debit, standard credit or smart prepayment, the payments should have been made automatically, whereas traditional prepayment customers have received the payments via vouchers to redeem at a top-up point.
If you pay for your electricity as part of your rent and your landlord has a domestic electricity contract with an electricity supplier, your landlord has to pass the discount on to you. Your landlord may be reselling the electricity to you based on your usage, in which case they must comply with the maximum resale price rules, which state they must not make a profit, according to government guidance.
Your landlord may be charging an ‘all-inclusive’ rent, where a fixed cost for energy usage is included in your rental charges. If this is the case, landlords are encouraged to come to an agreement with you on the discount in line with the arrangement in your tenancy agreement.
In addition, if you're living in a house in multiple occupation (HMO) and the landlord charges a bundled per calendar month rate (e.g. including rent, energy bills and broadband) you'll be paying a flat rate on the energy costs per month.
If your landlord makes monthly payments directly to a licensed energy supplier on your behalf and has increased their monthly charge to reflect the high energy costs they are paying, providing the landlord does not also use any of the energy supplied, they should pass on the full value of the EBSS as well as the Energy Price Guarantee to you.
Note that scammers have been using the cost of living crisis as a means of duping people into making payments and/or handing over their bank details, so make sure any communication you receive purporting to be from from DWP, your energy supplier or any other organisation is legitimate.
The government will not ask for your bank details, so watch out for any communication that suggests otherwise.
Our story on cost of living scams to watch out for can help you spot the fraudsters.
In order to help those who may 'fall through the cracks' – for example, people on housing benefit who are not claiming any other benefits – the government extended the Household Support Fund, delivered by local authorities, by £500m from October 2022 to 31 March 2023.
A further £842m is being provided to extend it by another 12 months until 31 March 2024.
The Household Support Fund is a measure that provides households in England with payments to help with essentials such as food, utilities and clothing. It was first introduced in September 2021 and was due to run until 31 March 2022 before it was extended.
In addition to the one-off payments, the state pension triple lock is being reinstated for 2023-24; it was temporarily changed to a 'double lock' for 2022 due to high inflation.
This means each year state pension payments increase by either wage growth, CPI inflation in the previous September or 2.5% – whichever is highest.
In November 2022, the government announced that the state pension will increase by September 2022's CPI inflation rate of 10.1% from April 2023, which means that the new state pension will be worth more than £10,000 for the first time.
Benefit payments will also increase by September's CPI inflation, providing an uplift for claimants from April.
This article was first published on 26 May 2022 and has been regularly updated since then. It was last updated on 3 April 2023.