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Government Cost-of-Living Support

Over the past few months there have been several government initiatives to help with cost-of-living support.

Here is a summary of these support payments, some are specific one-off payments for 2022/2023, while others are existing ongoing energy support payments

Govt support

Energy Price Guarantee

In addition to the above the government has introduced an energy price guarantee to run from October 2022 until April 2023. This guarantee caps the standard daily charges and the unit price per Kilowatt per hour for both electricity and mains gas:

Electricity:

Standard Charge per day = 46.4p

Unit charge per KWh        =  34p

Mains Gas:

Standard Charge per day = 28.3p

Unit charge per KWh        =  10.3p

Notes:
  • These are average prices for payment via direct debit; prices will vary by region.
  • Payment via prepayment meters will be 2% higher
  • Other payment methods (payment on receipt of the bill) will be 9% higher
  • This price guarantee saw an increase of 27% from prices introduced last April, had the government not intervened this percentage would have been more like 80%
  • The government/media have used a figure of £2500 as an illustrative amount of what an average household with typical energy usage will pay per annum with this price guarantee, again had they not intervened this figure would have been £3549.
  • It is important to remember that the cap is on the unit rate per KWh, not on your actual bill, so if you use more energy, you pay more ☹ and if you use less energy, you pay less 😊
  • Households not on mains gas will receive £100 which will be paid via their electricity supplier
  • People who had already agreed a fixed contract with their supplier will get a discount of  up to 17p per KWh for electricity and 4.2p per KWh for gas, this should bring them in line with the energy price guarantee, if it does not energy suppliers have agreed to allow their customers to move over to a variable rate without incurring any exit fees.
  • Next April we will have to revert to the Ofgem (Office of Gas and Electricity Markets) price cap, this will be based on wholesale gas prices for the period 17th November 2022 until 17th February 2023. Martin Lewis (using forecast figures from energy consultancy firm Cornwall Insights) said in his ITV program last Tuesday that we could see another increase of 73% taking the average annual payment for typical use up to £4350., however this is speculation, and we will not know for sure until after February.
  • Next April, once the price guarantee ends, the government has promised to provide more targeted support for low-income families, hopefully they will extend this support for middle income families also?
For more information, please visit the Cost-of-Living Support Workshop page

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