Now the new school term has started, HM Revenue and Customs (HMRC) is reminding families to open a Tax-Free Childcare account today to save up to £2,000 per child on their yearly childcare bills.
Families can use their Tax-Free Childcare account to pay for any approved childcare including holiday clubs, breakfast and after school clubs, child minders and nurseries.
The scheme provides working families, with children up to the age of 11, or 16 if their child has a disability, up to £2,000 a year per child or £4,000 a year if their child is disabled. For every £8 paid into a Tax-Free Childcare account, families automatically receive the UK Government top up of £2. Families can save up to £500 every three months for each child or £1,000 if their child is disabled.
Myrtle Lloyd, HMRC’s Director General for Customer Services, said: “Arranging childcare can be costly for working families. Tax-Free Childcare offers financial help so families can save on the cost of childcare. Search Tax-Free Childcare on GOV.UK and sign up online today.”
Opening a Tax-Free Childcare account online is straightforward and can be done in about 20 minutes. Money can be deposited at any time, 365 days a year, to be used straight away or left in the account and used whenever it is needed. Unused money in the account can be withdrawn at any time.
Prepayment meter households will no longer pay more on average for their energy than direct debit customers, as the UK Government scraps unfair charge
Unfair charge on prepayment meter customers scrapped
change will help around three million households and save on average £21 a year
together with the new energy price cap taking effect today, households will save hundreds of pounds on their bills
Fairness will be delivered for households today as the government scraps the unfair charge on prepayment meter customers.
The change, taking effect from today, will help around three million households using prepayment meters across Great Britain – bringing their bills in line with those who pay by direct debit, with the government stepping in to cover the difference.
Currently, households on the pay-as-you-go meters pay more on average than direct debit customers, as it costs suppliers more to service their homes – such as collecting payments or giving out vouchers – with the charges passed onto consumers.
Removing the prepayment meter premium means these households will save around £21 a year on their bills, making sure the system is fair and providing extra support to consumers who are typically on low incomes.
Scrapping the prepayment meter premium comes as Ofgem’s latest price cap takes effect today – which thanks to improvements in the wholesale market, will bring the typical annual energy bill down from £2,500 under the Energy Price Guarantee to around £2,074. This will help lower inflation – one of the Prime Minister’s five promises – as high energy prices drive up prices across the economy.
The fall in energy bills will save the average household around £426, or 17%, and means for every £100 previously spent on energy bills, consumers will now pay £83.
Energy Consumers and Affordability Minister Amanda Solloway said: “No one should be charged more for having a prepayment meter – today, we’re putting an end to this historic injustice.
“With households on prepayment meters typically on some of the lowest incomes, this is a vital change.
“Alongside the hundreds of pounds coming off energy bills from today, thanks to the fall in the price cap – this will offer extra help to ensure families stop being unfairly penalised.”
To ensure the prepayment premium comes to an end as quickly as possible, the Government will be funding the change up to April 2024. Ofgem as the energy regulator will be devising a plan that will eradicate it permanently after that date.
Earlier this year the government took steps to crack down on the abuse of prepayment meters by energy suppliers. The Energy Security Secretary Grant Shapps demanded action from Ofgem and suppliers to put an end to wrongful prepayment meter installations in vulnerable households.
The government is clear moving customers to prepayment meters must always be the very last resort and has asked for regular updates from Ofgem and consumer groups to make sure all suppliers adhere to the regulator’s new Code of Practice – which puts measures in place to protect against them being installed in homes where they shouldn’t be.
Recent figures showed nearly £40 billion was spent by government between October 2022 and March 2023 to help keep household and business energy bills down, the most ever provided to subsidise household bills in UK history.
Over winter, the government covered nearly half a typical household’s energy bill and saved the average home roughly £1,500 by the end of June. That included providing £650 million to households on traditional prepayment meters through the Energy Bills Support Scheme.
The scheme saw vouchers totalling £400 issued over six months from October with latest figures showing 85% had been redeemed by the end of May.
While the deadline for applications has passed, that number is expected to rise with the last applications and reflected in figures due over the Summer.
As part of the government’s plan to halve inflation this year, the Chancellor chaired a roundtable with CEOs from the Competition and Market Authority (CMA), Financial Conduct Authority (FCA), Ofcom, Ofgem and Ofwat.
Jeremy Hunt made clear his expectation that regulators work at pace to guarantee markets are working properly. With wholesale energy prices and other input costs now beginning to fall – the Chancellor also wants to ensure consumers benefit from these reduced costs.
During this current period of high inflation and interest rates, this also includes ensuring higher interest rates are passed on to savers.
Chancellor of the Exchequer Jeremy Hunt said: “I am pleased we’ve secured agreement with the regulators to act urgently in areas where consumers need most support to ensure they are treated fairly.
“We are working hard to halve inflation this year and return to the 2 percent target. Businesses must play their part too and I will keep a watchful eye on the progress they make.”
The Chancellor also agreed a new action plan with the regulators to support consumers, particularly the most vulnerable:
FCA have agreed to:
Deliver better deals for savers by driving competition, including reporting by the end of July on how the savings market is supporting savers to benefit from higher interest rates. The Government fully supports the FCA’s review and the new Consumer Duty gives them stronger powers to take action if necessary.
Require the largest banks and building societies as part of this to explain the pace and extent of their pass through of interest rates, and how they are proactively supporting savers to switch to high interest rate products.
CMA have agreed to:
Deliver a better deal for motorists by publishing their review of the road fuel market, which examines profit margins in supermarkets and other fuel retailers, on Monday. This will include the impacts on vulnerable consumers.
Help shoppers pay fair prices by bringing forward their update of competition and unit pricing in the grocery sector to earlier in July and laying out next steps. This will include further scrutinising the food supply chain as well as measures to make it easier for consumers to make the best choices.
Following affordability pressures in the housing market, provide an update on their housebuilding market study and work in the rented accommodation sector in August.
Actively scrutinise markets where cost-of-living pressures are growing and launch work in at least two new areas the CMA considers in need of further investigation. It will also update on key developments in its ongoing crackdown on misleading consumer practices.
Ofcom have agreed to:
Take action to push suppliers who have yet to introduce social tariffs (discount deals for vulnerable customers) to offer them in the broadband and mobile markets, as well as waive fees for any customers who want to switch providers to access a social tariff.
Push suppliers to take immediate steps to raise awareness of existing social tariffs and drive consumer take-up. Ofcom will work with government and other relevant bodies to support industry efforts.
Publish a report on its current review of in-contract prices to ensure consumers are sufficiently aware of what they are signing up to by the end of the year. This will consider whether Ofcom’s rules need to be strengthened. Ofcom will also publish an update on its full range of work to support consumers in July.
Ofwat have agreed to:
Crack down on water companies not going far enough to support customers to pay their bills, access help and repay debts. This will include assessing water company compliance with Ofwat’s Paying Fair Guidelines, and where companies’ approaches are found to be insufficient, setting out clear actions for improvement in July. Next year, Ofwat will also set out clear and binding license conditions for every water company on how to treat their customers, including customers in vulnerable circumstances.
Hold water companies to account over delivering existing social tariffs for those unable to pay water bills, as well as allowing consumers to apply for payment holidays and offering support to those on low-incomes.
Ensure targeted support for vulnerable customers by improving data sharing, such as those struggling with bills (along with Ofgem).
Ofgem have agreed to:
Ensure all suppliers are passing falling prices onto consumers, keeping the price cap formula under review to ensure that it mirrors the costs facing suppliers. The new lower cap from 1 July will reduce a typical annual household energy bill by £426.
Strengthen protections and support for the vulnerable by mandating the Code of Practice on prepayment meters and ensuring that suppliers are able to offer Additional Support Credit (ASC) to PPM customers in need. Both are subject to Ofgem consultations launched today.
Take action against suppliers that have over-charged business customers and publish its review of the non-domestic market this Summer.
Scrutinise supplier finances as the sector begins to move from loss making back into profit. The regulator and government moved quickly to stem losses and protect consumers when prices were rising sharply and expects suppliers to act responsibly and in the interests of their customers as prices fall and profits return. This includes ensuring they deliver good service standards and support the most vulnerable customers. Those who are not yet meeting new capital requirements should retain profits rather than pay out dividends.
Regulators agreed to provide regular updates to the Treasury on their progress and that a follow up meeting would be held later this Summer. The FCA, Ofcom, Ofwat and Ofgem will also publish a joint statement to set shared expectations on treatment of customers in financial difficulties.
As part of wider discussions with the Governor in the context of high food inflation, the Bank of England is reviewing CMA data and meeting with the food sector, with analysis included in the August Monetary Policy Report and/or the minutes of the August meeting.
The meeting with regulators on what more they can do to support people through a period of high inflation comes while the government continues with its plan to halve inflation this year and support the Bank of England in taking difficult decisions to return to the 2 per cent target.
Commitments from regulators to make sure consumers are not being exploited build on one of the largest cost-of-living support packages in Europe which has been rolled out to help the most vulnerable, worth £3,300 per household on average over this year and last.
This includes paying half of a typical household energy, direct cost of living payments to the most vulnerable and increases to benefits, state pensions and the National Living Wage of around 10 per cent.
The CEOs attending were:
Ofcom (telecommunications) – Dame Melanie Dawes
Ofgem (energy) – Jonathan Brearley
Ofwat (water) – David Black
Competition and Market Authority (CMA) (competition/consumer) – Sarah Cardell
Households in Edinburgh are being urged to check if they are eligible for over £1.3m of unclaimed fuel poverty vouchers before the deadline for using them runs out on Friday this week (30 June).
The Energy Bills Support Scheme, which ran between October 2022 and March 2023, enabled households to save £400 off the cost of their energy bills over the course of the six months.
Whilst most households received this discount automatically via their energy supplier, traditional prepayment meter (PPM) users were required to redeem monthly vouchers sent to them by their supplier for use at either Post Office or PayPoint top-up points.
Although the majority of vouchers have been redeemed there are still over £1m unclaimed vouchers in the city and the City of Edinburgh Council is calling on anyone with friends or family on a PPM electricity meter to make sure all eligible households benefit.
The deadline for claiming fuel poverty vouchers was highlighted in a motion from Forth Green Cllr Kayleigh O’Neill at Full Council on Thursday 22 June.
Council Leader Cammy Day said: “We know there are many people in the city suffering from fuel poverty especially since the high levels of energy costs came into force. There is financial support out there for people on prepayment meters suffering from fuel poverty but the voucher scheme ends this Friday.
“According to Ofgem 34% of eligible households in Edinburgh have not redeemed vouchers which is the equivalent of £1.3m of crucial financial help going to waste. I would really urge anyone on prepayment meters who hasn’t claimed their vouchers to do so in the next few days before the scheme ends.”
Claiming a voucher is simple. PPM users should bring their voucher, ID and energy prepayment key or card to the top up point specified by their energy supplier. Vouchers can then be redeemed in store immediately.
Previously issued vouchers expire after 90 days but can be reissued before 30 June. If a person thinks that they have missed their vouchers, they should contact their energy supplier. All vouchers must be used by 30 June.
· Government’s £150 Disability Cost of Living payments paid from today (Tuesday 20 June)
· Payments will be made automatically over two-week period between 20 June and 4 July 2023
· Anyone in receipt of certain disability benefits on 1 April 2023 is entitled and will receive the payment
· One-off disability cash forms part of wider support package worth up to £1,350 for the most vulnerable
More than six million disabled people across the UK are set to receive a £150 Disability Cost of Living Payment from today.
The one-off payments, issued by the Department for Work and Pensions throughout a two-week window, will help disabled people with the extra costs they face.
It comes as part of a wider package of Cost of Living support worth up to £1,350 to the most vulnerable households, underlining the Government’s commitment to supporting these those most in need.
The Government is also working hard to ease cost of living pressures by working towards the goal of halving inflation, which will lay the foundation for the long-term growth needed to improve living standards for everyone.
Secretary of State for Work and Pensions, Mel Stride MP, said: “We recognise that some of the most vulnerable UK households continue to face cost of living pressures, in particular those who are disabled.
“Our commitment to halving inflation and ultimately getting it back to the 2% target will relieve a lot of financial pressure for us all, but this extra support will help over six million disabled people right now as we work towards that goal.”
The Chancellor of the Exchequer, Jeremy Hunt MP, said: “The additional costs faced by disabled people mean inflation is particularly challenging, which is why halving it this year and getting back to the Bank of England’s 2% target is our priority.
“The £150 we’re sending disabled people over the next two weeks is part of a major cost-of-living support package worth just under £100 billion, providing some peace of mind to the most vulnerable in society.”
Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “We understand the additional financial pressures disabled people are facing, which is why we are putting another £150 in their pockets from today.
“This is on top of further cost of living payments for low-income benefit claimants, as we’re committed to providing support where it is needed most.”
As the payment is made automatically, those eligible for the support do not need to take any action. The payment reference on bank statements will appear as the individual’s National Insurance number followed by “DWP COL”.
The full list of benefit recipients that qualify for the Disability Cost of Living Payment between 20 June and 4 July are those who receive any of the following:
A small number of payments will be made after 4 July, where claimants were still awaiting confirmation of their eligibility or entitlement to qualifying disability benefits on 1 April.
This new payment is in addition to the £150 Disability Cost of Living Payment that was paid last September. Pensioners will also receive a further £300 payment later this year and people on eligible means-tested benefits will be paid up to two more Cost of Living payments through to next Spring totalling £900.
The Chancellor will meet with food manufacturers on Tuesday to discuss the cost of food and explore ways to ease pressure on households
He is also due to meet the Competition and Markets Authority about their investigations into the fuel and grocery markets
Government will look at reforms around unit pricing, to make it easier for consumers to compare the prices for similar products
The Chancellor will meet with food manufacturers today (Tuesday 23 May) to raise concerns about the high price of food in the UK and discuss measures the government can take with industry to ease the pressure on households.
Building on engagement between the Chief Secretary to the Treasury and the UK’s biggest supermarkets earlier this month, the Chancellor will ask food manufacturers to do what they can to support consumers.
As crucial players in the supply chain to supermarkets, this follow up meeting with food manufacturers will help ministers better understand the challenges firms are grappling with as inflated prices continue to plague the economy. The food and drink manufacturing sector is the largest in the UK, accounting for nearly 20% of total UK manufacturing and employing almost half a million people across the country.
On the same day, the Chancellor will meet with the independent Competitions and Markets Authority (CMA) to discuss the scope of their investigations into road fuel and groceries markets, including the possible action they could take if they are dissatisfied with the level of competition in the sector which could be allowing higher prices to prevail.
The government wants it to be easier for consumers to compare the prices of products, and the CMA is currently reviewing the use of unit pricing both in-store and online in the groceries sector. The government will consider updating pricing rules, including by strengthening the Price Marking Order 2004 (Retained EU Law), after the CMA review has concluded.
While rising food prices in the UK are in line with the EU average and headline inflation fell by 0.3 per cent last month, food inflation grew to 19.2 per cent. Food inflation disproportionately affects low-income households, who spend more of their income on food and are less able to swap what they would usually buy for cheaper alternatives.
Chancellor of the Exchequer, Jeremy Hunt, said: “High food prices are proving stubborn so we need to understand what’s driving that.
“That’s why I’m asking industry to work with us as we halve inflation, to help ease the pressure on household budgets.”
Chief Executive of the Food and Drink Federation, Karen Betts said: “We are looking forward to discussing the multiple drivers of food price inflation with the Chancellor, which have caused the fastest acceleration of food prices in a generation.
“Despite manufacturers’ best efforts in recent months to absorb rising costs in their margins, these have been both persistent and broad-based – from ingredients to energy and labour – making price rises unavoidable.
“We believe food and drink price inflation is close to its peak, and food and drink manufacturers will continue to work hard to keep prices as low as possible, conscious of the pressure on hard-pressed households.
“Government can help too, for example by urgently reviewing upcoming packaging recycling regulations to make them more efficient, by working with us to address labour and skills shortages, and by keeping to a minimum the labelling changes required of companies as a result of the recent agreement with the EU on the movement of food and drink to Northern Ireland.”
The government says it has acted decisively to help struggling households with rising prices, pledging to halve inflation this year and taking action to bring down bills for families. This includes introducing the Energy Profits Levy on oil and gas companies to pay almost half of a typical household’s energy bills, freezing fuel duty and taking difficult decisions on government spending to make sure we do not fuel inflation further.
One of the most generous support packages in Europe has also been rolled out, worth £3,300 per household on average over this year and last. Benefits and state pensions have been increased by over 10 per cent, up to £1,350 in direct cash payments are being made to millions of vulnerable households and record uplifts in the National Living Wage mean someone who is currently out of work and takes a full-time job will be over £7,500 better off.
Extra support has been put in place to help the most vulnerable with high food prices, including the £2.5 billion Household Support Fund which provides local authorities with money to support their communities with the cost of essentials, the £200 million Holiday Activities and Food Programme which supports children on Free School Meals with a nutritious meal during the holidays and an expansion of Free School Meals to all 5-7 year-olds.
The Prime Minister and Farming Secretary brought together representatives from across the UK food supply chain last week, where they outlined a range of measures to help strengthen the long-term resilience and sustainability of the sector and put farmers at the heart of plans to grow the economy.
Vast majority of £150 payments set to be made automatically over two-week period between 20 June and 4 July 2023
More than six million disabled people will receive payment and benefit from extra cost of living support
Comes as part of wider package of Government support, including separate means-tested Cost of Living Payments totalling up to £900, and £300 Pensioner Payments
More than six million disabled people in the UK will receive their one-off £150 Disability Cost of Living Payment from 20 June.
This follows the £150 Disability Cost of Living Payment that was paid last September, demonstrating the Government’s commitment to supporting the most vulnerable in society while delivering on its commitment to halve inflation this year and grow the economy.
Those being paid a disability benefit that qualifies them for the payment will receive it automatically during a two-week window starting on 20 June and finishing on 4 July.
At a time when costs are rising for everyone, this payment recognises the extra costs disabled people in particular often face, such as care and mobility needs.
A small proportion of payments will be made after this date, where claimants were still awaiting confirmation of their eligibility or entitlement to disability benefits on 1 April.
There will also be further payments of £300 for pensioners due later this year, meaning some of the most vulnerable households can receive up to £1,350 in direct Cost of Living Payments.
Secretary of State for Work and Pensions, Mel Stride MP, said: “This payment helps protect those who need our support the most, providing a vital financial boost to six million disabled people.
“Our multi-billion-pound package of support reinforces our commitment to help UK households with the rising cost of living. It comes on top of record increases to benefits and the national living wage.”
Minister for Disabled People, Health and Work, Tom Pursglove MP, said: “We know the cost of living has gone up for disabled people, which is why we are taking action to reduce the financial pressures they face.
“This £150 Disability Cost of Living Payment is on top of up to £900 that most low-income benefit claimants will also receive, helping ensure the most vulnerable in our society are protected from rising costs during this challenging period.”
The full list of benefit recipients that qualify for the upcoming Disability Cost of Living payment are those who receive:
Disability Living Allowance
Personal Independence Payment
Attendance Allowance
Scottish Disability Benefits (Adult Disability Payment and Child Disability Payment)
Armed Forces Independence Payment
Constant Attendance Allowance
War Pension Mobility Supplement
They must have received a payment (or later receive a payment) of one of these qualifying benefits for 1 April 2023 to get the payment. For those who were awaiting confirmation of their entitlement to disability benefits on 1 April, or who are waiting to be assessed for eligibility to receive disability benefits, the process may take longer, but payments will still be automatic.
Disabled people on low incomes in receipt of means-tested benefits may previously have been eligible for £301 this spring, and stand to be eligible for a further £300 this autumn and £299 in spring 2024. The £150 payment will be made on top of these Cost of Living Payments, with disabled people who wouldn’t qualify for the means-tested support, but who are in receipt of disability support, also receiving the payment.
Don’t miss out on the £301 Cost of Living Payment as a recipient of Pension Credit – submit your application for Pension Credit before FRIDAY – 19 May.
Did you know, if you get Pension Credit you could also get a help with your council tax, housing costs, broadband fees and energy bills?
All pensioners on a low income should check if they qualify for Pension Credit in order to also receive a Cost of Living Payment
Pensioners urged to check if they could be eligible for Pension Credit, worth over £3,500 a year on average
Those who successfully claim by 19 May could also receive a £301 Cost of Living payment – demonstrating Government’s focus on delivering the five priorities, including halving inflation, growing the economy and reducing debt
Pensioners can check their eligibility and get an estimate of what they may receive by using the online Pension Credit calculator
There are just TEN DAYS to go for people to claim Pension Credit and still qualify for the latest £301 payment, which they will receive direct into their bank accounts.
Provided a claim is made before 19 May, it can be backdated for up to three months so long as the applicant was also eligible to receive it during that time.
This builds on the extensive support that was delivered to pensioners last year, alongside measures such as holding down households’ energy bills and freezing fuel and alcohol duty, which deliver on Government’s priorities to halve inflation and grow the economy.
Minister for Pensions Laura Trott said: “Pension Credit can make a real difference and I am determined to make sure this support – worth an average of £3,500 a year – is reaching everyone who needs it, particularly as we know how much pressure households across the country have been under.
“Please check if you or your loved ones can claim for this extra support, and if you do it by 19 May you could qualify for the £301 Cost of Living Payment – giving another financial boost to those who need it most.”
Pension Credit is designed to help people over State Pension age and on a low income with daily living costs, though you do not need to be in receipt of State Pension to receive it.
It tops up a person’s income to a minimum of £201.05 per week for single pensioners and to £306.85 for couples or more if a person has a disability or caring responsibilities.
Worth on average over £3,500 a year, even a small Pension Credit award can provide access to a wide range of other benefits – such as help with housing costs, council tax or heating bills – in addition to the extra cost of living payments, worth up to £900 this financial year.
For more information visit the Pension Credit GOV.UK page. For extra resources for stakeholders and businesses, the department has also produced a Stakeholder Toolkit
Currently, around 1.4 million pensioners in Britain receive Pension Credit. However, many are still not claiming this extra financial help.
Pension Credit can be claimed by phone and online, ensuring that older people can apply safely and easily, wherever they are. The online Pension Credit calculator is also on hand to help pensioners check if they’re likely to be eligible and get an estimate of what they may receive
This help comes on top of the biggest State Pension increase in history, which means the full rate of the New State Pension will exceed £10,000 a year for the first time.
