Energy costs help package announced by government

3 mins read

Friday 4 February 2022

Tags: counting the costs, warm home discount scheme, energy costs


The government has announced a package of measures aimed at helping households with the cost of living crisis.   

This comes as the energy price cap, on which most families’ bills are based, will rise from £1,277 to £1,971 in April. That’s an almost £700 increase in energy bills for the average household.  

The package of help announced yesterday includes:  

  • £200 off energy bills in October for domestic electricity customers in Great Britain. But this will be paid back automatically by £40 per year over the next five years from April 2023.  
  • £150 off Council Tax bills in April for households in England in bands A to D. This will not have to be paid back (similar funds will be available in Scotland , Wales and Northern Ireland).
  • £144 million of discretionary funding for local authorities to support households who need support but are not eligible for the Council Tax rebate.  
  • A rise to £150 of the Warm Home Discount Scheme and the criteria to focus on those in fuel poverty. This will only affect energy customers in England and Wales. 

The government has also proposed lowering the number of customers a supplier must have to run the Warm Home Discount Scheme to 50,000 in April 2022 and then to 1,000 from April 2023. This would ensure households with smaller suppliers don’t miss out.

Any extra help towards raising household bills is welcome and something we have been campaigning for. But much more needs to be done to help families with disabled children, who often experience higher energy and household costs. 

For parents with children who have health conditions seriously impacted by the cold or respiratory issues impacted by damp, the anxiety and the consequences of rising energy bills are more severe.  

Upsettingly, a third of families who answered our Counting the Costs survey last summer said that pressure on household finances was negatively affecting the health of their child.  

That’s why we are calling on the government and energy companies to introduce a special tariff for households disabled children and to automatically pay the Warm Home Discount Scheme to households with disabled children.  

We would also like to see an increase in Carer’s Allowance and child disability payments under Universal Credit. 

Help with fuel bills 

There is help available so make sure you are getting everything you are entitled to. 

Energy saving tips 

It is worth checking to see if you can decrease the amount of energy you use. 

Financial help 

And if you are struggling with finances and debt, try our online benefits calculator or our online grants search.