Is help with energy bills about to be announced?

The Budget is less than two weeks away and speculation about what help might be offered to struggling households is growing.

And one question that’s being asked a lot is will the government offer help with energy bills?

The energy price cap went up by 4% earlier this month, and Cornwall Insight believes it could go up by a further 16% in January.

So all eyes are on chancellor John Healey to see if any support will be announced.

Chancellor hints at action on energy bills

In the run-up to a Budget, ministers are usually quite tight-lipped about what specific measures might be announced.

But they do often give hints that show the current thinking in government.

John Healey, for example, has just acknowledged that energy costs are “punishing at the moment”.

And speaking to ITV News, he said: “We will do what we can in the Budget, both for business and households, to give people a bit of breathing space.”

Meanwhile, energy secretary Miatta Fahnbulleh has said “short-term relief” with energy bills, adding: “We need to do our part to give people a little more breathing space."

What’s likely to be announced?

The expectation is that the government will extend the £150 Warm Home Discount to more people on means-tested benefits.

There’s also speculation that the government will extend its VAT cut on energy bills, as it was originally set to be cut for six months.

John Healey is set to deliver his Budget on 28th October, so in less than two weeks, we’ll have a much clearer understanding of what help will be on the way this winter.

Check back here on Budget day and we’ll be here to explain what’s been announced and what it all means for you.

Why we want a social tariff

Extending the Warm Home Discount and the VAT cut on energy bills would certainly be welcomed by households struggling with gas and electricity prices.

But as ever, there’s always more that can be done to help those households in the greatest need.

Money Wellness are calling for a national social tariff that would automatically reduce bills for eligible households.

When people are under financial pressure, some will turn to credit to cover essential costs.

And that can seriously compound their financial problems.

Yet many of the support mechanisms that are in place are complex, inconsistent and hard to access.

We believe a targeted, automatic and consistent social tariff would be much fairer, and also stop people falling into debt in the first place.

More than four in ten (42%) of the people we support come to us with gas and electricity arrears.

And based on our analysis, around 87% of these households could potentially meet common eligibility criteria for a social tariff, such as receiving means-tested benefits, disability benefits or experiencing financial hardship.

What can I do if I’m worried about energy bills?

If you’re struggling to keep up with your gas and electricity bills, there are steps you can take.

Speak to your supplier

Contact your supplier as soon as possible, as they might be able to offer payment plans, grants and advice on managing your account.

See what benefits you can claim 

Use our benefits calculator or give us a call to find out if you’re eligible for any financial support.

Ask for help with your debts

If you’re feeling weighed down by debt, contact us for confidential, practical and impartial debt advice.

Create a household budget

Work out exactly how much money you’ve got coming in each month and where it’s going, so you can prioritise essential bills and see where savings can be made.

Check our guide to creating a budget to find out more.

Try to save energy at home

Small changes like not overfilling the kettle and turning lights off in empty rooms can lead to big savings.

Check our list of smart energy-saving tips for more easy ways to bring down your energy bill.