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The Government has announced a package of support to help households cope with rising costs. It provides help with energy bills and cost of living support.  

 

Energy Bills Rebate 

The Energy Bills Rebate is worth £9.1 billion in 2022-23. It provides an upfront discount worth £200. Around 28 million households are set to benefit. Energy suppliers will apply the discount to domestic electricity customers from October. The Government will meet the costs. Then, the discount will be recovered automatically from customers’ bills. It will show as equal £40 instalments over the next five years. Recovery will begin from 2023. This is when global wholesale gas prices are expected to reduce. 

 

£150 council tax rebate 

Meanwhile, some households in England will receive a £150 rebate. It applies to properties in Council Tax bands A-D. Local authorities will make the rebate to bills from April. There is no requirement to repay. This one-off payment will benefit around 80% of homes in England. It answers calls for a VAT cut on energy bills. The Government claims the rebate is £1 billion more generous. Plus, it is more targeted towards lower-income families. 

 

Discretionary funding 

On top of this discount, there is discretionary funding of £144m. This will help vulnerable people on low incomes who don’t pay Council Tax. It also applies to those who pay Council Tax for properties in bands E-H. 

 

Energy bills and cost of living support 

A further £12 billion of support aims to ease cost of living pressures. Measures include a rise in the National Living Wage. It increases to £9.50 an hour from April. There are cuts to the Universal Credit taper rate and uplift to work allowance. This is expected to deliver an extra £1,000 a year. Two million low-income families will benefit. 

 

Putting children first 

Some measures support children directly. For example, the Holiday Activities and Food programme. It is worth up to £220m. The initiative provides enriching activities and healthy meals over Easter, the summer and Christmas holidays. 

 

Targeted help 

Help will be targeted. Working families and low-income households will benefit. As will the most vulnerable. 

 

UK wide support? 

The devolved administrations are receiving around £715 million funding where UK Government support doesn’t cover Scotland, Wales or Northern Ireland. 

 

Full details about energy bills and cost of living support: www.gov.uk/government/publications/government-support-for-energy-bills-and-the-cost-of-living-factsheets