£350 of new help for millions to help with energy costs
Today, 3rd February 2022 the government announced they would be helping with the huge increase in energy bills.
Chancellor Rishi Sunak stood up in parliament and revealed new plans to help support households struggling with the energy bills increase.
He said: “While costs are going up, we need to adjust to paying more for energy prices.”
The Chancellor who has been described by some in parliament as the worst Chancellor in history said he wants to help with the rising costs.
He said he wants to see that millions of households pay less at first and spread costs.
The Government has said the rebates and support by the government will help 28 million households. It will see an increase to £350 instead of the £693 recent energy price cap. However, like everything with the government there is a catch.
Many believe the Government have not done enough. The feedback we received was that this was another mismanagement of the Tory Party.
Tens of thousands of people in the Greater Lincolnshire area are going to be forced into further debt. Many will have to turn to food banks to survive while some have said they will have to choose between food and heating their homes.
We spoke to some people who were due to retire this year and they have said, with the increase in the cost of living and the rising energy bills, they were considering working past their retirement.
So, what is the Government idea to tackle the rising energy bills? We have listed their plan below.
Spread cost increase over time
Customers will receive a discount of £200
Energy companies will receive the funds and add the discount to electricity bills in October 2022.
This not free money and will be repaid by customers
This gas debt will be in small instalments of £40 per year over 5 years.
The money will be recovered from customers bills from 2023 where the government hope that gas bills will come down.
£150 council tax rebate
In April, when people receive their dreaded council tax bill, they will receive £150 rebate if they live in a property in council tax bands A – D.
This rebate will automatically be taken off the council tax bill and won’t need to be repaid.
Government’s New £144 million fund
A new fund has been set up which will help those living in A – D council bands who don’t pay council tax. It will help people who live in areas where council tax is much higher.
The fund is aimed at helping and supporting vulnerable people and those individuals on low incomes that don’t pay Council Tax or that pay Council Tax for properties in Bands E-H.
There is talk about expanding the eligibility of the Warm Home Discount Scheme. However, as of yet nothing has been confirmed. But, according to early reports, the £140 payment will increase to £150.