The month ahead brings hope for struggling households as a range of financial assistance programs offer relief from the soaring cost of living. With prices skyrocketing across various aspects of life, many families will be able to take advantage of available cash grants.
As many households struggle to afford basic necessities such as electricity and water, £1,993 in free cash assistance awaits eligible individuals this month. This article will detail some of the ways in which eligible households can save money in the upcoming month.
Cost of Living Payment
One notable support initiative is the Cost of Living payment, which has a total value of £900. Specifically designed to assist struggling households with essential expenses like energy and food, this tax-free payment is divided into three instalments: £301, £300, and £299.
The first instalment is set to be deposited into bank accounts imminently, with 4.8 million individuals having already received their payments since April 25. If you have yet to receive this much-needed cash injection, rest assured that payments will continue until Wednesday, May 17.
Tax credit recipients should keep an eye out for a specific code, “HMRC COLS,” in their statements, indicating the cost of living payment. If you believe you may be eligible for pension credit, act swiftly, as applying before May 19 will make you eligible for the first instalment. Check an online pension credit calculator to see your eligibility and receive an estimate of the potential amount you may receive.
Household Support Fund
Many households can benefit from the Household Support Fund, a program administered by local councils. With a total worth of £842 million, this fund aims to alleviate financial burdens for those with the lowest incomes, compensating for the rising cost of living for things like food, water bills, electricity, boiler costs and more.
The specific vouchers or grants available depend on your location, so inquire about the offerings and payment methods provided by your local council. For instance, individuals residing in Torridge might be eligible to receive up to £1,000.
Eligible recipients can already apply for these funds, and the money will be disbursed within 14 working days. If you reside outside of Torridge, ensure you stay informed about the opening of the next round of funding by checking your council’s announcements.
New Benefits Rates
In addition, certain households on Universal Credit experienced delayed payments last month. The benefit amount was adjusted to account for September’s inflation, increasing from £265.31 to £292.11. However, numerous claimants reported that their payment rates remained unchanged.
According to Anna Stevenson, a benefits expert at Turn2us, the new rates will not take effect until the first assessment period starting on or after April 10. Therefore, the earliest recipients will observe the new rates reflected in their payments is from May 17 onwards.
However, for some claimants, their initial payment on the new rates may not be received until June 16, as it depends on the timing of their assessment periods. If your claim’s assessment period began before April 10, the new rates will only apply in the subsequent assessment period, occurring between April 26 and May 25, with payment on June 1.
Energy Bill Support Scheme
Households without a contract with their energy supplier can apply for a one-off £400 payment to assist with their bills. This payment is available to individuals who did not automatically receive the Energy Bill Support Scheme discount.
Qualifying residences include park homes, houseboats, and care homes, among others. This payment will not be issued in May, but the application deadline is June 1, so submitting your application this month ensures a beneficial discount in the coming months. The application process can be completed conveniently online through the official gov.uk website.
Energy Supplier Grants
Energy suppliers often provide their own grants to support financially strained customers. Notably, British Gas, E.ON, Octopus, and Ovo offer grants worth hundreds of pounds. These grants may be accessible even to non-customers, expanding the scope of assistance available. For instance, the British Gas Energy Support Fund is extending support of up to £1,500 to eligible applicants.
Each energy supplier has specific criteria that applicants must meet, which are typically outlined on their respective websites or can be obtained by contacting their customer service departments. If you are unsure about your energy supplier, you can use the Ofgem supplier search tool on their website to find the relevant information. Additionally, reaching out directly to your energy supplier allows you to inquire about available assistance options or obtain referrals to other organisations that can provide support.
