How the government is helping with the cost of living

This winter, everyone in England, Scotland and Wales was given a £400 discount on their energy bill as part of the Energy Support Scheme. The discount was applied automatically via suppliers – be wary of any messages relating to submitting a claim, as it could be a scam.

Those on prepayment meters also got the £400 discount either credited directly to their smart prepayment meter or via vouchers.

The Energy Price Guarantee has also capped the amount suppliers can charge for gas and electricity. This has limited typical household energy bills to £2,500 a year – and the government has extended it for a further three months, until the end of June 2023, which it says will save the average family an additional £160.

This support will continue until April 2024, but at a lower level. The typical bill for households will be reduced to around £3,000 and offer a saving of around £500.

People on low incomes with high energy bills may also qualify for a £150 discount to their electricity costs through the Warm Home Discount Scheme. Contact your supplier to find out if you’re eligible.

In April 2023, the State Pension will go up by 10.1%. This will see the full state pension rise to £203.85 a week. This is the biggest ever increase, and is the result of the ‘triple lock’. The agreement guarantees the state pension will go up by the greater of inflation, wage growth or 2.5%. In September – the month that matters – the Consumer Prices Index measure of inflation reached 10.1%.

Other inflation-linked benefits and tax credits will also go up by the same amount.

Many people across the UK are losing income they’re entitled to because they don’t understand what support is available. Find out if you’re missing out on benefits with the Inbest calculator.