Cost of Living

Question

The Government understands that people across the UK are worried about the cost of living. That is why the Government has announced £37 billion of support this financial year. The most vulnerable will receive up to £1,200, through the £400 Energy Bills Support Scheme, a £150 Council Tax rebate, and one-off £650 Cost of Living Payment for those on means-tested benefits, with additional support for pensioners and those claiming disability benefits.

In addition, the Government has also taken decisive action to support households and business with rising energy costs this winter through the Energy Price Guarantee and the Energy Bill Relief Scheme. The Energy Price Guarantee limits the energy bill of an average household to £2,500 a year, saving them at least £1,000 a year based on current energy prices. The Energy Bill Relief Scheme provides support for businesses through a discount which is calculated by comparing the estimated wholesale portion of the unit price to a baseline ‘government supported price’ that is lower than currently expected winter wholesale prices. For all non-domestic energy users in Great Britain this Government supported price has been set at £211 per megawatt hour (MWh) for electricity and £75 per MWh for gas. Some of the cost of living support schemes require legislation to be enacted, including the Energy Bills Relief Scheme. Further information on each can be found on the gov.uk website.

We are continuing to keep the situation under review and focus support on the most vulnerable whilst ensuring we act in a fiscally responsible way.