Help for households facing high energy prices
Rocketing energy prices have hit British households hard. To tackle this, regulator Ofgem has capped the energy bill of a household with ‘typical’ consumption at £1,849 a year between 1 April and 30 June 2025.
But if you use more or less gas and electricity than the average, your bill will be higher or lower. The cap amount will be reviewed again in May 2025.
The price cap has also been backed up by government help through a variety of schemes. Most of these have come to an end as prices have stabilised.
Help from now on is being targeted at the most vulnerable – low-income households, pensioners and some disabled people. So who is entitled to help and what will they get?
The Household Support Fund
The Household Support Fund (HSF) helps vulnerable families in England with expenses like food, clothing and utility bills. It’s distributed by local councils. You don’t have to be receiving benefits to get help from the fund. Eligibility varies, as it’s up to the council to set its own rules.
In October 2024, the government confirmed an extension of the HSF until 31 March 2026. Contact your local council to see what help is available.
In Scotland, you may be able to apply for a Crisis Grant through your local council if you’re on a low income. As a guide, if you’re on benefits, such as Income Support, Universal Credit, Pension Credit, Jobseeker’s Allowance, or your income is about the same as someone who is, it’s more likely you can get a Crisis Grant.
In Wales, if you’re facing extreme financial hardship, you may be able to get an Emergency Assistance Payment (EAP) from the Discretionary Assistance Fund. This can help cover essential costs, such as food, gas and electricity.
Grants and schemes to help those in fuel poverty
The most recent government figures revealed that around 2.73 million households in England were in fuel poverty in 2024. This is an estimated 11% of households.
Fuel poverty is defined as households whose disposable income, after meeting the costs of their energy bills, would leave them below the poverty line.
According to Ofgem, many of these households are considered vulnerable consumers. This includes those who are elderly, disabled, chronically sick or low-income families on benefits with young children. However, the sharp increase in energy costs means that a far wider group will potentially be affected while prices remain high.
The following grants and schemes are available to help with energy bills for those receiving certain benefits or in fuel poverty:
Winter Fuel Payment
Historically, all pensioners received the Winter Fuel Payment. But for winter 2024/25, only people born before 23 September 1958, living in England or Wales and receiving one of the following benefits will be eligible:
Pension Credit
Universal Credit
income-related Employment and Support Allowance (ESA)
income-based Jobseeker’s Allowance (JSA)
Income Support.
If you live in Scotland, the Pension Age Winter Heating Payment has been deferred until winter 2025/2026. The government has said eligible pensioners in Scotland will be treated on terms equivalent to Winter Fuel Payments in England and Wales.
Pensioners won’t get the extra Pensioner Cost of Living Payment given in 2022 and 2023. It stopped in winter 2023.
If you’re a pensioner on a low weekly income – below £218.15 for a single person or £332.95 for a couple – it’s worth seeing if you’re entitled to Pension Credit. As well as entitlement to the Winter Fuel Payment it unlocks access to a range of other benefits.
See if you’re likely to be eligible with the Pension Credit Calculator.
While around 1.4 million pensioners are already receiving Pension Credit, it’s estimated 880,000 households eligible for the support are still to claim.
Cold Weather Payments
Cold Weather Payments are to help cover heating costs during a very cold snap. Those who are eligible will get £25 for each consecutive seven-day period between 1 November 2024 and 31 March 2025 that the temperature drops below zero degrees.
You are eligible for the payments if you get certain benefits such as Pension Credit, Universal Credit, Support for Mortgage Interest and Income Support.
Warm Home Discount Scheme
The Warm Home Discount is a one-off £150 discount on your winter electricity bill between October and March. You may be able to get the discount on your gas bill instead if your supplier provides you with both gas and electricity. If you’re getting the Guarantee Credit element of Pension Credit, you should automatically qualify. If you’re on a low income and meet your energy supplier’s criteria for the scheme, you may also be eligible. Contact your supplier to find out.
Home Upgrade Grant
The Home Upgrade Grant (HUG) provides energy efficiency measures and low-carbon heating to low-income households in the worst-performing, off-gas-grid homes in England.
You may be eligible to apply for a grant from your local council if:
You don’t use a gas boiler as your main heating and
Your home has an EPC rating of D, E, F or G and
You have a household income of £36,000 a year or less. You might still be eligible if you earn more than that in some postcode areas.
If you’re eligible, your local council will arrange a home survey to see how your home could be made more energy efficient. If improvement work is agreed, your local council will organise and pay for it.
ECO Scheme
The Energy Company Obligation (ECO) is a government-backed scheme run by energy suppliers, with the aim of tackling fuel poverty and helping the most vulnerable.
The latest ECO scheme, ECO4, began on 27 July 2022 and will run for four years until 31 March 2026.
One part of the scheme is the Affordable Warmth Scheme. Eligible consumers on certain benefits can receive free installations, or subsidised costs, for:
Replacing or repairing their boiler
Cavity-wall and loft insulation
Draught-proofing
Other upgrades to their heating.
Top tip
The government has lots of advice on Keeping warm and well: staying safe in cold weather. See how to look after yourself and others on GOV.UK
If you live in Northern Ireland, check NI Direct for the latest information on help with energy and the cost of living.
What can I do if I’m struggling to pay my energy bills?
In the first instance, call your energy supplier and let them know you’re struggling. They are duty-bound to treat you fairly and offer an affordable payment plan that will enable you to pay off your fuel debts in instalments. Many of them also run schemes that offer charitable grants that can help with debt.
See more on what to do if you can’t afford your energy bills.
FAQs
How is a household classed as being in fuel poverty?
The government classes a household as being in fuel poverty if:
The household’s energy efficiency rating is band D or below; and
Its disposable income after housing and fuel costs (for example, after paying the rent and energy bills) falls below the official poverty line.
Where can I get advice on saving energy to help cut my bills?
Check out our guide to energy saving tips.
For home improvements that could make your property cheaper to heat, see GOV.UK.
The Energy Saving Trust has lots of advice on saving energy in your home.
Home Energy Scotland has network of local advice centres covering all of Scotland. Expert advisors offer free, impartial advice on energy saving, keeping warm at home, renewable energy, greener travel, cutting water waste and more.
For more than 20 years, Dan has been introducing, developing and managing product propositions across a variety of industries, including energy, insurance and banking, all to get the right outcome for customers.
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