If you’re living in the UK, you’ve likely noticed the sharp rise in energy bills in recent years. With the cost of living going up, many households are struggling to keep up with these expenses. However, there’s good news! There are several grants, schemes, and benefits available that can help ease the burden of energy costs.
This blog will dive deep into various options, helping you find the right support to lower your energy bills.
Why are Energy Bills So High
The spike in energy costs isn’t just due to one factor, but a combination of things. The increasing price of gas and electricity on the global market is certainly a major factor, but there’s also the rising cost of maintaining energy infrastructure, taxes, and the green energy transition.
In the UK, many families have faced tough decisions about whether to heat their homes or manage other essential costs. Luckily, the government and energy suppliers have introduced several measures to help you tackle these costs.
Let’s explore the main grants and benefits available to reduce your energy bills.
1. Warm Home Discount Scheme
One of the most well-known energy-saving schemes is the Warm Home Discount Scheme. If you’re eligible, you could receive a one-off discount on your electricity bill, typically during the winter months.
The scheme is aimed at people who are on a low income or who receive certain benefits. The discount won’t be given directly as cash, but instead, it’s applied to your energy account by your energy supplier. The amount can vary, but for the 2023/2024 winter season, the discount is set at £150.
To see if you’re eligible for the scheme and how to apply, visit the Warm Home Discount website.
2. Winter Fuel Payment
For older people, the Winter Fuel Payment is an excellent way to get help with heating costs. If you were born on or before 25th September 1957, you could qualify for a tax-free payment between £100 and £300.
The best part is that you don’t have to apply if you already receive certain benefits, such as the state pension. Payments are typically made automatically between November and December.
You can check your eligibility and find more details about the Winter Fuel Payment on the official government website.
3. Cold Weather Payment
Another scheme worth knowing about is the Cold Weather Payment. This kicks in if the temperature in your area drops below zero degrees Celsius for seven consecutive days between November and March.
For each period of cold weather, eligible households will receive £25. Like the Winter Fuel Payment, you don’t usually need to apply for this one—it’s paid automatically to those who qualify, based on receiving other benefits like Universal Credit or Pension Credit.
More information on the Cold Weather Payment can be found here.
4. Energy Company Obligation (ECO) Scheme
The Energy Company Obligation (ECO) scheme is another major program designed to help lower-income households. Under this scheme, energy suppliers are required to help improve the energy efficiency of homes across the UK. This could involve anything from installing insulation to providing more energy-efficient heating systems.
ECO is targeted at vulnerable households or those on specific benefits, and improvements could help you save hundreds of pounds annually on your energy bills.
For more on the ECO scheme and to check your eligibility, visit Ofgem’s ECO webpage.
5. Home Upgrade Grant (HUG)
The Home Upgrade Grant (HUG) is a relatively new initiative aimed at helping households who aren’t on the gas grid. If you rely on electricity, oil, or other non-gas fuels for heating, you may be eligible for a grant to upgrade your home’s energy efficiency. This could involve installing a new boiler, insulating your home, or even switching to a renewable energy heating system.
You can find more information about HUG and how to apply through your local council or on the UK Government’s energy grants page.
6. Fuel Direct Scheme
If you’re struggling to manage energy debt, the Fuel Direct Scheme can help you pay your bills directly from your benefits. Under this scheme, a fixed amount is taken directly from your benefit payments to cover your energy bills and any arrears.
This scheme ensures that your energy bills are paid on time, helping you avoid late payment fees or the risk of being cut off.
You can contact the Department for Work and Pensions (DWP) to set up Fuel Direct or ask your energy supplier for more information. Learn more on the Fuel Direct Scheme page.
7. Local Energy Grants and Schemes
Beyond national schemes, it’s worth checking with your local council, as many offer regional energy-saving programs. Local schemes vary, but they may provide grants for insulation, boiler replacements, or other energy efficiency measures.
Some councils even run crisis energy funds to help with emergency payments if you’re at risk of having your energy supply cut off.
You can find out what’s available in your area by contacting your local council or visiting their website. You can also use the Simple Energy Advice tool to search for local energy grants and support schemes.
8. WaterSure Scheme
Though this is a water bill scheme, it’s worth mentioning because it can also help relieve financial stress when it comes to household bills. If you use a lot of water due to a medical condition or have a large family, you might be eligible for the WaterSure Scheme. It caps your water bills, ensuring you don’t pay more than the average metered household.
Contact your water supplier to see if you qualify, or visit WaterSure Scheme for more details.
9. Universal Credit and Housing Benefit
If you’re currently receiving Universal Credit or Housing Benefit, it’s worth investigating whether you’re entitled to extra financial help for energy costs. Housing Benefit sometimes includes a provision for energy, especially if your rent includes utilities. In addition, people on Universal Credit may qualify for additional payments or emergency support.
You can check your eligibility for these benefits via the UK Government’s Universal Credit page and the Housing Benefit page.
10. Charities and Energy Trusts
Several charitable organizations and energy trusts offer financial support or energy bill grants to those in need. Here are a few worth exploring:
- British Gas Energy Trust: You don’t need to be a British Gas customer to apply. This trust helps people pay off energy debt. You can apply directly on their website British Gas Energy Trust.
- Turn2us: Turn2us is a UK charity that offers support for those struggling with financial hardship, including energy costs. You can use their benefits calculator and find out more at Turn2us.
- Citizens Advice: You can also contact Citizens Advice for free guidance on energy grants, benefits, and any other financial support available. You can visit them online at Citizens Advice or find a local branch.
Reducing Energy Costs Beyond Grants
While these grants and benefits can help alleviate your energy bills, there are some other practical steps you can take to save energy and reduce costs:
- Insulate your home: Proper insulation can save you hundreds per year.
- Use a smart meter: A smart meter helps you track your energy usage and avoid surprise bills.
- Switch to energy-efficient appliances: Look for appliances with a high energy efficiency rating.
These small changes can make a big difference in reducing your energy consumption and, as a result, your energy bills.
Managing rising energy costs can be daunting, but there’s a wealth of grants and benefits available to support you. Whether it’s through national schemes like the Warm Home Discount or local council grants, there are options to help ease the burden.
If you’re unsure where to start, a great first step is to use the Simple Energy Advice website to search for advice and grants that suit your situation. With the right support, you can tackle rising energy bills and keep your home warm this winter.