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FACTSHEET: GOVERNMENT SUPPORT FOR COST OF LIVING

Posted on March 9th, 2022

The Government understands that people are concerned about pressure on household
budgets and is taking action to help.


Alongside the £9.1 billion Energy Bills Rebate announced on 3 February, it is providing £12
billion of support over this financial year and next to ease cost of living pressures, with help
targeted at working families, low-income households and the most vulnerable.


Full list of measures to support the cost of living:


At the Autumn Budget:
• The National Living Wage will increase to £9.50 an hour this April, providing an extra
£1,000 pay for a full-time worker – this has risen every year since it was introduced in 2016
• The cuts to the Universal Credit taper rate and uplift to work allowance will put an
extra £1,000 extra a year into the pockets of two million low-income families.
• Fuel duty has been frozen for the twelfth year in a row, meaning the average driver
has saved £1,900 since 2010.
• All alcohol duties have been frozen for a third year in a row, providing a tax cut worth
£500m for families every year.


On top of job support schemes during the pandemic:

• The £500m Household Support Fund supports millions of households in England with
essentials over the coming months.
• The Holiday Activities and Food programme, worth up to £220m, provides enriching
activities and healthy meals to children across the country over Easter, the summer
and Christmas holidays.
• Four million families are getting help with their council tax bills.
• Councils have been given an extra £65m to support low-income households with rent
debts.
• Increased generosity of the Local Housing Allowance for housing benefit, with more
than 1.5m households benefiting from an additional £600 a year
• The £140 million Discretionary Housing Payments is supporting families with rent or
housing costs.
• Over 1 million NHS workers are receiving a 3 per cent pay rise.


Measures to support people with their energy bills:
• The Energy Bills Rebate will give the majority of households £350 of support with
rising energy bills, including a £200 discount on energy bills this Autumn and a £150
non-repayable reduction in Council Tax bills for all households in Bands A-D in
England. There will be £144 million of discretionary funding for Local Authorities to
support households who need support but are not eligible for the Council Tax
reduction.
• The Energy Price Cap is saving 15 million households £100 a year on average since
2019.
• Warm Home Discount provides a £140 rebate on energy bills each winter to over 2.2
million low-income households.
• Winter Fuel Payments to over 11.4 million pensioners at a cost of £2bn annually, with
£200 awarded to households with somebody who has reached State Pension age
and is under age 80 or £300 for households with somebody aged 80 and over.
• Cold Weather Payment providing £25 extra a week for poorer households when the
temperature is consistently below zero.
• The Energy Company Obligation has already installed 3.3 million measures in
2.3 million homes and we are increasing the amount energy suppliers invest in
energy efficiency measures for low-income households, extending ECO until 2026,
and, from April 2022, boosting its value from £640 million to £1 billion a year. This will
help an extra 305,000 families with green measures such as insulation, with average
energy bill savings of around £300 a year.


Additional measures in place:
• Doubled free childcare, providing working parents with up to 30 hours, worth up to
£5,000 per child every year. The Government has also introduced tax-free childcare,
providing working parents with up to £2,000 of childcare support a year. Under
Universal Credit, parents can claim back up to 85% of eligible childcare costs,
compared to 70% under the old system.
• The Social Housing Decarbonisation Fund and Sustainable Warmth programme is
estimated to save households an average of £350-450 per year, and future minimum
energy efficiency standards in the private rented sector will require landlords to
improve their properties’ energy performance, driving bills down.
• Increased the value of Healthy Start vouchers by over a third to help those in need
with young children, supporting them to buy fresh fruit and vegetables to boost the
long-term health of their children.
• Put a further £24 million into the National Breakfast Club programme, with the aim of
providing healthy breakfasts in up to 2500 schools in disadvantaged areas.
• Established the Money and Pensions Service in 2019, who provide free pensions
and money guidance, as well as debt advice in England.
• Introduced the 26-30 railcard, the Veteran’s Railcard, and the 16-17 rail Saver
enabling more people to benefit from discounts on rail travel.
• Investing a further £11.5bn in the Affordable Homes Programme from 2021-26, which
will deliver up to 180,000 affordable homes built from 2021 onwards.
• Pension Credit provides extra money to help with living costs for those over State
Pension age and on a low income. Claiming it also opens up further support like
Housing Benefit and Council Tax reduction schemes.

Cost_of_living_factsheet__energy__v2.pdf (publishing.service.gov.uk)

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