Surging energy prices have posed a huge challenge for many households across the UK. Inflation has come to a 40 year high – which is pushing some families to their financial limit. UK energy regulator Ofgem has predicted that the typical household energy bill would rise by £800 in October, reaching £2,800 a year. This prediction came with a warning that 12 million households could fall into fuel poverty.
In response to the situation, the government has offered support. Each household will receive a £400 discount on energy prices this October. This financial aid is designed to ease the pressure on struggling families, hopefully mitigating the damage that this fuel crisis is causing. Additionally, the poorest households will receive a payment of £650. This will be given in two parts.
We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills. We have a collective responsibility to help those who are paying the highest price for the high inflation we face
Chancellor, Rishi Sunak
Chancellor Rishi Sunak also announced that:
- Eight million households on means-tested benefits will get £650 paid directly into their bank accounts in two lump sums – one in July, the other this autumn
- There will be separate one-off payments of £300 to pensioner households and £150 to individuals receiving disability benefits – groups who are “most vulnerable” to rising prices
- The emergency Household Support Fund, which is allocated by councils in England, will be extended by £500m to £1.5bn. The Devolved governments will receive equivalent funding
