In response to the ongoing cost of living crisis, GLAMOUR has launched a new cost of living series, taking an unflinching look at how the crisis has unfolded and what to do about it, from practical tips on how to support your community to first-person perspectives on how the crisis affects marginalised people.
Take a deep breath, we're about to talk about the cost of living crisis (we know, we know, it's everywhere we look at the moment), though this time, we've got more information on how you can find some financial relief during this tricky, and downright scary, Time.
It's no secret that gas, coal and electricity prices have been steadily rising to their highest levels in decades, and just five days Ofgem announced that the energy price cap will increase to £3,549 a year for an average household from 1 October 2022. But things don't stop there, the British energy price cap is forecast to rise even further to £5,387 in January 2023 and £6,616 in April 2023 as consumers endure the highest inflation for 40 years. We know, it feels pretty scary right now.
So what's caused these monumental increases? Well, it's a combination of factors, but most starkly, due to supply and demand on the global wholesale market. This has driven up the amount providers pay for gas and electricity - and that cost is now being passed on to the consumer.
The climbing prices are unsurprisingly causing many of us extra worry, as prices across food, fuel and rent are on the rise too. In short, we could do without the stress that the cost of living is causing, especially after the last few years of the pandemic.
Seven tips you can adopt to avoid the price hikes.
Sadly, we can't wave a magic wand to change things, but we have taken a deep-dive into what can be done to help support, or even reduce, our energy bill payments. So, below you'll find our guide to the various schemes available through the government, whether you're a home owner, in social housing or living in a rented accommodation (though they will need to be discussed with your landlord who will likely have to apply on your behalf).
Following the global rise of energy prices, the Department for Business, Energy and Industrial Strategy announced in May that it will deliver a £400 non-repayable discount to households to help with energy bills from October 2022. The £400 discount will be paid to consumers in instalments over 6 months with payments starting from October 2022, to ensure households receive financial support over the winter months.
So what does this look like in reality? Well, households will have a discount of £66 applied to energy bills in October and November, and this figure will rise to £67 per month from December through to March 2023. The discount will be provided on a monthly basis regardless of what you pay monthly or quarterly.
And the good news? There is no need to contact your supplier as all domestic electricity customers will be automatically eligible. Well, at least that's one thing off our burgeoning to-do lists. If you don't see the discount applied by the end of October, contact your supplier who will be able to look into this for you.
If you pay your energy bills via direct debit, standard credit, payment card or smart prepayment meter, the discount will be automatically applied to your energy bill (or credited for smart prepayment meter customers) without you needing to do anything.
If you use a traditional prepayment meter, you will receive redeemable vouchers from yourenergy provider in the first week of each month, issued via text, email, post or Special Action Message (SAM). To redeem these, just head to the top-up point (outlined by your energy provider), and ensure that your energy provider has up-to-date contact details so that you receive the vouchers on time.
Doctors have described nerve damage injury from laughing gas as an epidemic.
The government website notes that, crucially, energy providers will never ask you for your bank details in order to issue the discount.
“We know that people are struggling with rising energy prices which is why we have taken action with support over the winter months to help ease the pressure on household budgets,” Chancellor of the Exchequer, Nadhim Zahawi, says about the scheme. “This £400 off energy bills is part of our £37 billion of help for households, including 8 million of the most vulnerable households receiving £1,200 of direct support to help with the cost of living.
“We know there are tough times ahead," Zahawi adds (you can say that again). "We will continue to do everything in our power to help people.”
You can find out more about the scheme here.
The government has also pledged a £12 billion Help to Heat scheme, which connects households with grants to improve the energy efficiency of homes, and will be available through installers, local authorities, energy companies and other bodies. Below, you'll find the four main arms of the scheme, what they mean for you and how to access them.
The Boiler Upgrade Scheme (BUS) is a UK Government initiative to encourage more people in England and Wales to install low carbon heating systems, such as heat pumps and biomass boilers. Your installer can advise whether a heat pump or biomass boiler is suitable for your property.
The scheme will run from 2022 to 2025 and to be eligible, you need to be a homeowner, the owner of a small business property, living in England or Wales. To apply, you will need to find an MSC certified installer in your area who is able to carry out the work, they will then advise you on whether your installation is eligible for a grant under the scheme.
Would you talk money on the first date?
The LAD scheme aims to raise the energy efficiency of low-income and low energy performance homes, including off-gas network homes. The grant is available to residents whose total household income is less than £30,000 a year, including benefits, in homes with the lowest energy (EPC) ratings of D, E, F or G.
If you're unsure o your home's energy rating, you can find out more about your energy certificate here.
The government committed to the Social Housing Decarbonisation Fund (SHDF) in 2019, with a proposed £3.8 billion available over a 10 year period to help decarbonise a significant amount of social housing stock.
The fund subsidises measures such as ground source heat pump installations to tackle fuel poverty, reduce emissions and increase the energy efficiency of homes.
The first wave of the fun, which ran in the financial year 2021/22, awarded £179 million of funding to 69 projects which will improve the energy performance of around 20,000 social homes. It is expected that the second wave of the fund will be open for applications in early September 2022 and will be worth £800 million across three years. Future funding waves are subject to treasury approval.
You can find out more here.
Is the rest of the world taking notes?
If you claim certain benefits, live in private housing or live in social housing, you might be able to get help for energy-saving improvements to your home. The ECO scheme is intended to help with the costs of insulation work (for example to your loft or cavity walls) or to help replace or repair your boiler - or other upgrades to your heating that will help you save money on heating your home in the future too.
Different energy suppliers have different amounts of support and offer different types of improvements - so you will need to check with your energy company if you are eligible.
Contact your council to find out if they’re taking part in the scheme, or contact an energy supplier directly.
