Tag: cost of living crisis

Politicians must urgently address “relentless reality” of hardship as 7 million households continue to go without essentials

📢 All political parties must explain how they will urgently tackle hardship this #GeneralElection, says the Joseph Rowntree Foundation. .

The latest findings from our cost-of-living survey, out today, found the number of households going without essentials hasn’t dropped below 7 million since May 2022. This is unacceptable.

Millions of low-income households are having to take drastic measures to cope with a crisis that is far from over:

-1.6 million households turned off their fridge or freezer

– 4.9 million households couldn’t replace worn out clothing

– 5 million households reduced showers

Meanwhile, party leaders remain silent on what they would do to address this in power. This should bring shame to a country as wealthy as ours.

🗳 Politicians must set out how they will bring an end to this relentless hardship. They need to tell us their immediate plan to help families who can’t afford life’s essentials – as well as their long-term strategy to tackle poverty.

Find out more about the relentless reality of years-long hardship for low-income families, here:

New research from the Joseph Rowntree Foundation (JRF) shows the relentless reality of years-long hardship for low-income families, with almost 5 million households finding themselves having to cut back on showers.

Those on the lowest incomes, over 5 million households, have continued to go hungry, skip meals and cut back on food. 

Carried out immediately before the general election was called, the latest data shows the number of low-income households who are going without essentials like food, adequate clothing and a warm home hasn’t fallen below 7 million since May 2022.

JRF is calling on the politicians to set out their plans to tackle ongoing hardship. It found the bottom 20% of low-income households are facing levels of hardship that refuse to budge and whose situation is no better compared to last year, despite some improvements to the economic situation for families higher up the income scale.  

Research from the Joseph Rowntree Foundation (JRF) finds that: 

  • 7 million low-income households (60%) were going without essentials in May this year. [3] [4] 
  • 5 million low-income households (42%) took fewer showers or baths due to cost during the cost-of-living crisis so far. 
  • 7 in 10 (71%) low-income households in the bottom 20% were going without essentials in May this year, the same as May last year.  

Families on low incomes say they are still taking the same drastic measures to try and save money that were widely reported at the height of the cost-of-living crisis.  

In May 2024, low-income households reported that they had taken the following measures through the cost-of-living crisis to cope, due to cost:  

  • 4.9 million couldn’t replace worn out or outgrown clothing (42%) 
  • 3.7 million sold their belongings (32%) 
  • 1.6 million turned off their fridge or freezer (13%) 
  • 6.8 million reduced their use of appliances (58%) 
  • 7.2 million heated their homes less than they needed to or less often (62%) 

Those with the least are struggling the most, with levels of hardship staying at stubbornly high levels. In the last 12 months, the proportion of households going hungry, cutting down on food or skipping meals in the previous 30 days has not budged for those in the bottom 20% of incomes. But there is a slight improvement for those in the bottom 20-40% of incomes. [5] 

Our social security system should act as a safety net for families who’ve fallen on hard times. However, 86% of low-income households who received Universal Credit were going without the essentials in May this year.

Rachelle Earwaker, Senior Economist at JRF, says: “The number of low-income families in our country who’ve been forced to choose which essentials to go without because they can’t afford them hasn’t fallen below seven million since May 2022. Despite inflation falling there has been no let up for the poorest families, who are just as likely to be going without food as last year.” 

“We need our politicians to set out how they will bring an end to this relentless reality of hardship in the general election campaign.

“Political leaders need to tell us what they will do straight away to help families who can’t afford life’s essentials, as well as their long-term plans to tackle poverty.”  

The Leith Collective aims to help the ‘cut-back kids’with free school uniform exchange

The kids may be counting down the days until school’s out for summer, but many parents are worried about making their money stretch in the coming months.

Whether it’s the cost of essential childcare or activities to keep the kids entertained, many are concerned they just won’t have enough to pay for school uniforms when the new academic year finally rolls around in August, so are having to make cut-backs in response.

And it’s understandable. The latest research shows parents spend an average of almost £300 per year on primary school uniforms and more than £400 per year on secondary school uniforms. And so, to help ease the pressure,

The Leith Collective is launching its free school uniform exchange on Saturday 1st June. 

The exchange will take place at all four of The Leith Collective stores – at Edinburgh’s Ocean Terminal and Fort Kinnaird, Glasgow Fort and their brand new store at Dundee’s Overgate. The Community Interest Company is calling on locals to donate good quality uniforms, shoes, schoolbags and lunchboxes to those in need. Items will be available for anyone to collect completely free of charge, no questions asked. 

The initiative is the brainchild of The Leith Collective founder, Sara Thomson, who has just returned from 10 Downing Street after receiving a personal invitation from the Secretary of State for Culture, Media and Sport.

This was Sara’s third visit to Downing Street, having previously been invited by Prime Minister Rishi Sunak and former Prime Minister Boris Johnson to discuss the positive impact of The Leith Collective’s important work on the community. 

Speaking ahead of the launch of the free school uniform exchange, Sara said; “The cost of living crisis is seemingly relentless, and there is now a generation of children growing up who have never known anything other than cut-backs and stressed out parents struggling to make ends meet.

“So, we’re taking action to help lighten the parent’s load by removing the expense of buying a new school uniform and helping the ‘cut-back kids’ get the best possible start to their education.”

Scottish Pet Food Banks suffer from huge drop in donations

Edinburgh Dog and Cat Home reports drop in donations has had a serious impact on pet owners

The pet food bank service which has been used as a lifeline by so many has been severely affected by the drop in donations it receives.

The Edinburgh Dog and Cat Home (the Home) works with 87 pet food bank providers across East and Central Scotland, providing meals to pet owners who would otherwise not be able to afford to feed their beloved pets.

Without food bank support from the Edinburgh Dog and Cat Home, some pet owners would be forced to surrender their beloved dog or cat. However, capacity at the Home itself is at a maximum and if even 1% of animals supported by foodbanks had been surrendered to the Home, they would be beyond capacity and be forced to turn them away.

In 2023 the Home was able to fulfil over 75% of pet food requests that they received, but that number has dropped to less than 50% since February 2024. The Home is now struggling to support the food banks with even the basic amount of cat and dog food that they require to support families in desperate need.

The demand for pet food bank support is growing so rapidly it is currently outstripping supply.  

Last year the Home provided 671,000 pet meals in total through emergency food packs accessed at the Home and through food banks – a staggering 104% increase on the number of meals they provided in 2022. In April 2024 alone the Home supplied 1,144 dogs with one week’s worth of dog food and 2,124 cats were supported with one week’s worth of cat food.

Jamie Simpson, Director of People and Services at Edinburgh Dog and Cat Home, said,“Our Pet Foodbanks are a lifeline for thousands of dog and cat owners across East & Central Scotland, who, without our support, may have to give up their loved pet.

“We rely solely on donations to provide food supplies and with the cost-of-living crisis, demand is increasing. The Home is now at a point in which our foodbank donations are critically low but demand for help is at a record high, so we are asking anyone who can to support us with a donation of dog or cat food, to help pet owners in need in the community and keep pets in loving homes.”

The cost of living crisis has put pressure on food banks to support growing numbers of communities who are not able to afford to feed their families and pets.

In 2023 the Edinburgh Cat and Dog Home supplied 86,779kg of pet food, 595,816 meals were distributed at pet food banks across East and Central Scotland, 753 dogs were helped through Emergency Food Packs (75% increase from 2022), and 798 cats were helped (an 8% increase from 2022).

Food bank provider, Marie Johnson from Broxburn’s The Larder, said, “A couple of years ago I used to go out once or twice a week to collect donations, now I’m going out every single day.

“As soon as I stack the shelves they are being emptied.”

Without food bank support from the Edinburgh Dog and Cat Home, some pet owners would be forced to surrender their beloved dog or cat, as this anonymous user explains: “I didn’t realise I could get help with dog food. I have been missing meals myself to make sure my two dogs were being fed, thanks to the Larder and the Dog and Cat Home, I can eat as well now.  

“Without the food provision support I would have to give up my two dogs which would be terrible – my pets are key to my mental and physical health and overall wellbeing.  I would like to say thank you for the pet food, I really don’t know what I would do without this service.”

The support of generous donors has kept Edinburgh Dog and Cat Home open for 140 years, giving animals a safe place to recover and find love and helping countless more pets through 87 foodbanks across East and Central Scotland. 

Twenty volunteers collect, organise and distribute donations to pet food bank locations across Scotland each week.

Please contact foodbanks@edch.or.uk if you would like to support the Edinburgh Dog and Cat Home by running a pet food drive at your place of work or community group, or if any pet food store/business would like to help with donations.

Nearly half of British adults expect fall in standard of living

  • Energy prices and cost-of-living crisis top list of financial concerns
  • Women are more concerned about external factors, such as a recession, impacting their finances
  • People plan to increase time spent reviewing their finances due to rising costs

Nearly half (46%) of UK adults are worried that their standard of living will fall over the next 12 months, reveals research conducted on behalf of Handelsbanken Wealth & Asset Management. 

Concern was highest among those in their 30s (55%), dropping to 38% of over 50’s – likely due to accumulated savings.

Despite recent declines, energy prices still top people’s biggest concerns on the factors threatening their living standard, along with the cost-of-living crisis and high prices caused by inflation.

External risks worry women more

Women are more concerned than men about most external risks to their finances, including inflation (79% versus 72%), rising interest rates (59% versus 52%) and a recession (83% versus 73%). However, men worry more about geopolitical instability (57% versus 50% women) and stock market volatility (42% versus 37% women), with the latter perhaps due to being more inclined to invest, the research also revealed.

Divided on death and divorce

Men are more concerned about losing wealth through divorce (24% versus 19%), whereas women are more likely to fear the financial impact of their partner or spouse dying (47% versus 42%).

Proportion of people concerned about various factors impacting their personal finances

FactorOverall proportion of individualsWomenMen
Energy prices78%80%74%
The cost-of-living crisis / recession78%83%73%
Inflation76%79%72%
A global economic downturn63%63%63%
Rising interest rates55%59%52%
Income tax increases54%56%53%
Geopolitical instability53%50%57%
Scams and frauds51%56%46%
Death of a partner / spouse45%47%43%
Stock market volatility40%42%37%

Time invested

The study showed that these concerns are changing how much time we spend reviewing our finances each month.

On average, consumers spend over six hours a month on their finances, with groceries and other household costs taking up the most time (52 minutes) followed by bank account management (48 minutes), and paying for holidays (42 minutes). Wealthier people with assets over £100k spend longer keeping their financial house in order, averaging eight hours a month. Men, meanwhile, typically spend around 20% longer than women.

A tougher financial climate means we expect to spend more time managing our finances overall, largely in response to dealing with rising costs and stubborn inflation (48%) and the need to save more money (41%).

When it comes to those looking to decrease their time investment, nearly a third (29%) said they plan to reduce the time spent looking at their financial affairs as it makes them feel too anxious.

This may go some way towards explaining the fact that a significant proportion of people don’t currently spend any time at all reviewing commitments such as their pensions (33%), insurance (31%) or investments (23%).

Alasdair Wild, Area Manager at Handelsbanken Wealth & Asset Management, said: “Dealing with the ongoing cost-of-living and keeping your finances in check can be a time-consuming process and a real challenge for most people given there only are so many hours in the day. 

“However, doing the bare minimum is unlikely to offer much protection in such a tough financial climate, and investing time to plan and manage your finances and, when required, bringing in external professional support, can make a real difference to protecting your standard of living.

“While avoiding the issue may provide temporary relief, it will only exacerbate problems down the line, so seeking support is key.”

Click here to view the full research report Gender and generation: unravelling the wealth gap.

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£30 million paid this year to help households with higher energy bills

Number of winter payments passes 400,000 mark 

 People in Scotland have received more than £30 million via two Scottish Government benefits to help them deal with increased energy costs this winter, new statistics have shown.   

Winter Heating Payment supports households on low incomes, including older people, disabled people and families with children under five.    

Child Winter Heating Payment helps families of the most severely disabled children and young people.     

The official figures show more than 400,000 Winter Heating Payments of £55.05 were issued between November last year and the end of March. More than 30,000 Child Winter Heating Payments of £235.70 were made in the same spell.    

Winter Heating Payment replaced the UK Government’s Cold Weather Payment in 2023. Most people getting it receive more money on average than via Cold Weather Payment. 

People receive Winter Heating Payment whatever the weather, unlike Cold Weather Payment when the temperature needs to drop to a specific level.  

Child Winter Payment, introduced in 2020, is not available anywhere else in the UK. There is also no cap on the number of children who can get it in the same family. 

 Cabinet Secretary for Social Justice, Shirley-Anne Somerville, said:   “The £30.2 million paid over the course of winter provides support to those who need it most. It is being paid quickly and effectively to help mitigate the worst of the cost of living crisis.  

“Winter Heating Payment guarantees those who qualify will get a payment every year – in contrast to the UK Government approach which needs the weather to be under a certain temperature for a sustained spell.    

“Both Winter Heating Payment and Child Winter Heating Payment have recently been increased in line with inflation which means we will be getting more money into people’s pockets in 2024/25. I am pleased that we are getting the vast majority of these payments to people in good time.   

“I urge anyone who is struggling during the cost-of-living crisis to visit the Scottish Government’s Cost of Living website for support and advice.”    

Only 10 days left to claim Pension Credit and secure £299 Cost of Living boost

  • DWP urges pensioners to act quickly and check if they are eligible for Pension Credit by 5 March 2024
  • Eligible people who claim by this date could secure additional £299 Cost of Living boost
  • Claiming the benefit could also open doors to additional help with housing costs, council tax, and heating bills

Hundreds of thousands of pensioners could pocket an extra £299 if they claim Pension Credit in the next 10 days.

Those who successfully apply for Pension Credit by 5 March could also secure a further £299 boost in the form of a Cost of Living payment thanks to backdating rules.

Pension Credit, which averages over £3,900 a year, is there to lend a hand with day-to-day expenses for those who have reached State Pension age and are on a low income.

Minister for Pensions Paul Maynard said: “We are committed to ensuring every pensioner receives the financial support available to them.

“Anyone who is unsure whether they or a loved one is entitled to Pension Credit should quickly check using our online Pension Credit calculator – it’s never been easier.

“Not only could this secure an extra £3,900 every year and unlock a whole host of other support, if successfully claimed by 5 March a further £299 Cost of Living boost is up for grabs.”

While around 1.4 million pensioners are already receiving Pension Credit, there are an estimated 880,000 households eligible for the support who are yet to claim it.

For single pensioners, Pension Credit guarantees a minimum weekly income of £201.05; for couples, it’s £306.85. Additional help is also available for those with disabilities or caring responsibilities.

And even small amounts of Pension Credit could open doors to further financial assistance, covering things like housing costs, council tax, and heating bills, as well as potentially the £299 backdated Cost of Living payment.

You can apply for Pension Credit over the phone, online, or by post. And for anyone unsure about eligibility or how much they might get, the online Pension Credit calculator tool can help.

The State Pension is due to rise by 8.5% in April 2024 – meaning the new full State Pension will be worth £221.20 per week. 

Applications for Pension Credit can be made: 

Ofgem: Welcome fall in the price cap but high debt levels remain

Energy regulator Ofgem has today (Friday 23 February, 2024) announced a significant reduction of the energy price cap for the second quarter of 2024. 

The price cap, which sets a maximum rate per unit that can be charged to customers for their energy use, will fall by 12.3% on the previous quarter from 1 April to 30 June 2024. For an average household paying by direct debit for dual fuel this equates to £1,690, a drop of £238 over the course of a year – saving around £20 a month.  

This will see energy prices reach their lowest level since Russia’s invasion of the Ukraine in February 2022 caused a further spike in an already turbulent wholesale energy market, driving up costs for suppliers and ultimately customers. 

However, despite reaching this welcome milestone, Ofgem recognises that the cost of living remains high and many customers continue to struggle with their bills as standing charges rise and energy debt reaches a record figure of £3.1 billion. 

Therefore, today Ofgem is also announcing: 

  • Confirmation of the levelisation of standing charges to remove the ‘PPM premium’ previously incurred by prepayment customers.  
  • A decision to allow a temporary adjustment to the price cap to address supplier costs related to increased levels of bad debt. 
  • A decision to extend the ban on acquisition-only tariffs (BAT) for up to another 12 months. 
  • Confirmation of the end of the Market Stabilisation Charge (MSC) from April 1. 
  • A decision not to change wholesale cost allowances following a review conducted in late 2023. 

Jonathan Brearley, CEO of Ofgem, said: “This is good news to see the price cap drop to its lowest level in more than two years – and to see energy bills for the average household drop by £690 since the peak of the crisis – but there are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers. 

“That’s why we are levelising standing charges to end the inequity of people with prepayment meters, many of whom are vulnerable and struggling, being charged more up-front for their energy than other customers.  

“We also need to address the risk posed by stubbornly high levels of debt in the system, so we must introduce a temporary payment to help prevent an unsustainable situation leading to higher bills in the future. We’llbe stepping back to look at issues surrounding debt and affordability across market for struggling consumers, which we’ll be announcing soon. 

“These steps highlight the limitations of the current system – we can only move costs around – so we welcome news that the Government is opening the conversation on the future of price regulation, seeking views on how standard energy deals can be made more flexible so customers pay less if using electricity when prices are lower. 

“But longer term we need to think about what more can be done for those who simply cannot afford to pay their energy bills even as prices fall. As we return to something closer to normality we have an opportunity to reset and reframe the energy market to make sure it’s ready to protect customers if prices rise again.” 

Affordability remains the most significant issue, as people continue to struggle with bills over the last two years, which has led to record levels of energy debt. 

 

To address this challenge in the short-term, Ofgem will allow a temporary additional payment of £28 per year (equivalent to £2.33 per month) to make sure suppliers have sufficient funds to support customers who are struggling.

This will be added to the bills of customers who pay by direct debit or standard credit and is partly offset by the termination of an allowance worth £11 per year that covered debt costs related to the Covid pandemic.  

Prepayment meter (PPM) customers will not be impacted by the extra charge, reflecting the fact that many do not build up the same level of debt as credit customers because they top up as they go. 

Ofgem also confirmed plans to maintain the equalisation of standing charges across payment methods so that customers are not charged more depending on the payment method they use.

Since October 2022 the so-called ‘PPM premium’ was removed by government support via the Energy Price Guarantee. However, with that support coming to an end on April 1, Ofgem has taken steps to provide a lasting solution, which must be funded by bill payers rather than tax payers, to maintain fairness in the system. 

This means PPM customers will save around £49 per year while direct debit customers will pay £10 per year more. 

Increasing network costs has also contributed to the rise in standing charges – and in anticipation of this we published a call for input in November 2023 and are currently reviewing more than 40,000 responses. 

Today Ofgem is also publishing a decision to extend the ban on acquisition-only tariffs (BAT) for another 12 months, but intends to open a consultation to consider shortening this extension to just six months. 

The BAT was introduced in April 2022 to provide more stability at the height of the energy crisis, removing often risky short-term discounted tariffs intended to attract customers from other suppliers. 

As competition returns to the market, Ofgem is encouraging rising numbers of customers switching with a number of measures, including shortening the time suppliers are given to complete a customer transfer from 15 days to just five. 

Additionally, from 1 April, the Market Stabilisation Charge – introduced in tandem with the BAT – will come to an end, meaning suppliers are no longer required to compensate a new customer’s previous supplier when they switch. 

This influenced the regulator’s decision to temporarily extend the BAT rather than remove both safeguards at the same time, ensuring a phased and responsible return towards normality in the market while preventing a return of the risky behaviours which contributed to the high number of supplier failures during the energy crisis. 

Ofgem is also publishing a decision following its wholesale adjustment review. Following unusually high volatility in wholesale prices between October 2022 and September 2023, the regulator examined whether suppliers experienced differences between wholesale costs and the allowances they were allowed to recover via the price cap. 

However, after careful consideration the regulator has concluded to take no further action as wholesale costs did not systematically differ from allowances. 

Citizens Advice Scotland has responded to today’s announcement by Ofgem, setting the energy price cap at £1,690.

The charity is stressing that even though prices are coming down they are still way too high for many households.

CAS Social Justice spokesperson Matthew Lee said: “Today’s announcement has to be seen in the context of peoples’ incomes and how badly households have been battered by the cost-of-living crisis of the past 18 months.

“Even if prices are coming down they are still way too high for many people to be able to afford, particularly the many who have had to go into debt to cover their energy costs since the price surge in 2022.

“It’s important that we don’t become complacent about the lower cap. The fact is that too many people are still struggling to pay these bills, and more targeted financial support like a social tariff is needed for the most vulnerable households.”

Previous CAS research on energy affordability has found that: 

  • Nearly 3 million people report switching the heating off when it’s cold, wrapping themselves in blankets and extra layers instead.
  • 1.4 million people regularly sit in the dark, with no TV or laptop/tablet on, to save on energy bills.
  • Nearly 3 million people in Scotland have cut back on food as a result of rising energy bills.
  • Tens of thousands of people in Scotland have been forced onto pay as you go energy meters against their will.
  • Over 300,000 people say they are concerned about energy debt.
  • In December the average energy debt for people seeking complex debt advice was £2,307 – up nearly £500 compared to the same time last year.
  • 185,000 people say they have changed their bathing habits to save on hot water – they’re sharing bathwater or showering at work or at the gym.

Help tackling council tax debt

Pilot scheme will see councils and advice services work more closely together

Extra help for people struggling with council tax debt will be on offer in three local authority areas under a pilot scheme. 

The Scottish Government is providing Citizens Advice Scotland with £200,000 funding to better understand the reasons why some people end up in council tax arrears and to work collaboratively with local councils to help reduce and prevent council tax debt in future. 

Citizen’s Advice Bureaux in Renfrewshire, Clackmannanshire and the Scottish Borders will test different ways of working including: 

  • Providing targeted support to individuals facing council tax debt
  • Simplifying the referral processes between councils and advice services
  • Organising mutual training sessions for council and Citizens Advice staff

Housing Minister Paul McLennan visited Roxburgh and Berwickshire Citizen’s Advice Bureau to launch the project.  

Mr McLennan said: “We know many people are struggling in the cost of living crisis and that is why we are targeting resources at those most in need.

“Council tax debt is a significant issue, and one that particularly affects the most vulnerable. The three Bureaux involved in these pilots have established relationships with their local authorities. This funding will help build on those connections to help individuals tackle problem debt and also provide valuable learning on how public sector debt can best be managed. 

“Advice services are critical to Scotland’s communities, supporting people to understand their rights and entitlements, maximising incomes and helping to reduce poverty. This year we will invest more than £12.5 million in a range of advice services providing free income maximisation, welfare and debt advice.” 

Myles Fitt, Financial Health Strategic Lead at Citizens Advice Scotland said: “Council tax debt is the single biggest debt issue that clients bring to the CAB Service each year. The cost-of-living crisis is only worsening this problem, so we welcome the opportunity this funding provides to make a difference to peoples’ lives and financial well-being.

“Through working in partnership with councils, the three bureaux involved in this pilot will bring their deep insight into the factors and barriers that lie behind council tax debt to develop joint solutions that will help those in arrears now and in the future.”

People on low incomes urged to check if they can get £150 energy bill discount

Eligible low income households urged to make sure they get £150 in Warm Home Discount before 29 February

  • Low income households who qualify for the Warm Home Discount are urged to make sure they get the £150 discount.
  • Most of the 3 million households who qualify will automatically receive this energy bill support.
  • Households who need to confirm their details must do so by the end of February.

People on low incomes could benefit from a £150 rebate on their energy bills – and are being urged to act now where they need to, so they can get the support before this year’s scheme closes. 

The help is available to over 3 million households across Great Britain that are most at risk of fuel poverty, with many receiving the discount automatically. However, some customers in England and Wales have been sent a letter asking them to confirm their details by calling the Warm Home Discount Helpline so they can check their eligibility and get the rebate.  

To mark Big Energy Saving Week, Minister for Affordability and Skills Amanda Solloway is today urging any of these households who need to provide more information to call the helpline by 29 February and get the support they are entitled to.  

The scheme forms part of measures to keep costs down for families and put more money in their pockets. It targets support to protect those most at risk of fuel poverty this winter, following a significant drop in energy prices since their peak last year and the Government delivering on its pledge to halve inflation – which is now at a two-year low of 3.9%.  

Tax cuts announced at the start of the year will also support 27 million people across the UK, meaning a household with two average earners will save nearly £1,000 a year.

Minister for Affordability and Skills Amanda Solloway said: “We will always act to support the most vulnerable – and this means making sure those most in need are getting the right support.  

“Today, I am urging people on low incomes who have been notified about the Warm Home Discount to make sure they act now to get £150 off their energy bill.  

“Please check your letter and call our helpline before the end of February if you need to provide more information.”

The UK government’s Warm Home Discount offers targeted energy bill support for those most in need. This includes low income pensioners and households in England and Wales with high energy costs. 

These customers received a letter at the end of last year explaining the discount and instructions on any action they may need to take.  

For the vast majority of these customers, the discount is automatically applied to bills between October 2023 and March 2024, or is available as a top-up voucher for those with a prepayment meter. 

However, some people in England and Wales who received a letter and could qualify for the support have been asked ring the government helpline number provided in their letter to confirm their details.

Customers can also find out more on the government’s Warm Home Discount gov.uk page and use the online eligibility checker to see if they qualify, or call the general Warm Home Discount helpline on 0800 030 9322. 

In Scotland, customers on low incomes who have not received a letter may still be eligible and should apply via a different route, by contacting their energy supplier as soon as possible.   

The support comes on top of wider action to protect vulnerable households, including a £900 payment for those on means-tested benefits, £300 for pensioner households and an extra £150 available for those on disability benefits.  

The Government has also invested over £2 billion into the Household Support Fund over the last two years, increased the Local Housing Allowance Rate so £1.6 million private renters on Housing Benefit or Universal Credit gain an average of nearly £800 a year and £600 in tax-free cash for pensioner households to help with energy bills through Winter Fuel Payments.

Cold Weather Payments have also been triggered to help households receiving certain benefits to stay warm this winter. The scheme – which runs until March 2024 – provides low-income households with an automatic payment of £25 following periods of cold weather.  

Anyone can access advice on how to reduce energy costs and heat their home for less via the government’s Help for Households website. This includes energy saving tips as part of the It All Adds Up campaign, which helped British households an estimated £120 million on their energy bills last winter.

More information about the Warm Home Discount is available here and households can check if they are eligible for the support via the GOV.UK online eligibility checker.

TUC: UK families suffering “worst decline” in living standards in the G7

UK is only country in G7 where household budgets have not recovered to pre-pandemic levels

  • Families would be £750 a year better off if real disposable income had grown in line with other leading economies 
  • Working people are being made poorer by Conservative failure, union body says 

The UK is suffering the worst decline in living standards of any G7 country – according to new TUC analysis published this week.

The analysis shows the UK is only G7 economy where real household disposable income per head hasn’t recovered to its pre-pandemic levels: 

Real household disposable incomes in the UK were 1.2% lower in the second quarter of 2023 than at the end of 2019. 

But over the same period they grew by 3.5%, on average, across the G7. 

The TUC estimates that if real disposable income in the UK had risen in line with the G7 average UK families would be £750 a year better off. 

More pain ahead 

The union body warned that the contraction in UK household budgets is going to get worse – despite falling inflation. 

The Office for Budget Responsibility (OBR) forecasts that real house disposable income per head in Britain will fall by an additional 3.4% by the end of the first quarter of 2024. 

And according to the same forecasts household budgets won’t even recover to their pre-pandemic levels until the end of 2026. 

The OBR said in November that UK households are suffering the worst period for living standards since modern records began in the 1950s. 

Households in debt 

The TUC says the Conservatives’ failure to grow the economy and deliver healthy wage growth has pushed many households further into debt. 

Analysis published by the union body at the end of December revealed that unsecured debt (credit cards, loans, hire purchase agreements) is set to rise by £1,400 per household, in real terms, this year. 

The TUC says working people have been left brutally exposed to rising costs after years of pay stagnation. 

UK workers are on course for two decades of lost living standards with real wages not forecast to recover to their 2008 level until 2028. 

The TUC estimates that the average worker has lost £14,800 since 2008 as a result of their pay not keeping up with pre-global financial crisis real wage trends. 

TUC General Secretary Paul Nowak said: “The UK is the only G7 nation where living standards are worse than before the pandemic. 

“While families in other countries have seen their incomes recover – household budgets here continue to shrink. 

“This is a damning indictment on the Conservatives’ economic record.  

“Their failure to deliver decent growth and living standards over the last 13 years has left millions exposed to skyrocketing bills – and is pushing many deeper into debt. 

“We can’t go on like this. Britain cannot afford the Tories for a day longer.” 

Growth in real disposable household income in the G7 

Country change 2019Q4 to 2023Q2 
United Kingdom -1.2 
Italy 0.1 
Germany 0.2 
Japan * 0.5 
France 2.4 
Canada 3.0 
G7 3.5 
United States 6.0 
source: OECD; * Japan to 2022Q1 

– The analysis is based on OECD figures for real household disposable income per head, which extend to 2023Q2 (except for Japan, which go to 2022Q1). Looking forward, UK figures are based on Office for Budget Responsibility projections in the November 2023 Economic and Fiscal Outlook. As with the ONS outturns and OBR projections, cash figures are in 2019 prices. 

– The OBR measure living standards as real household disposable income (RDHI) per person.