Ofgem is expected to announce the new energy price cap on Friday, with analysts at Cornwall Insight predicting a 10% increase starting October 1.
Upcoming Payments to Support Households and Pensioners Amid Winter Budget Strain
According to the latest forecast, those on the standard tariff who pay by Direct Debit could see their annual bills rise from £1,568 to £1,762, an increase of £194.
The winter months usually strain household budgets more, and this year, there will be no cost of living payments. Additionally, around 10 million pensioner households will miss out on the annual Winter Fuel Payments, which typically range from £200 to £300.
This change comes after the UK Government decided to limit the payments to those over 66 who are on means-tested benefits like Pension Credit.
The Scottish Government has also implemented this change in eligibility and postponed the introduction of its replacement, the Pension Age Winter Heating Payment, until the winter of 2025/26.
Yet, there are six, different one-off payments to be given out to households, disabled individuals and people over State Pension age before the year’s end. Most of these lump sums are meant to assist with climbing heating bills. Many benefit claimants are also set to get a ‘bonus’ and an additional payment for unpaid carers.
Winter Fuel Payment: £100-£300
Most of these payments are automatically provided in November or December, those eligible receive letters including information about the exact amount they will get before receiving their payment.
The change with the greatest impact on senior households this winter is the adjustment to the eligibility criteria for the one-off payment.
This payment ranges from £100 and £300, based on the recipient’s age and home conditions. Notably, only those born before September 23, 1944 are eligible for the entire £300.
People must be over the age of 66 and receive a means-tested benefit, such as Pension Credit. Those over the State Pension age who get an income-related payment during the week of September 16-22, 2024, will get the payment automatically. This contribution is tax-free and does not affect any other benefits.
Eligible pensioner households will receive letters in October or November with details on how much Winter Fuel Payment they qualify for.
Child Winter Heating Payment: £251.50
The Child Winter Heating Payment of £251.50 supports Scottish households with disabled children or youngsters under the age of 19. This payment is meant to help families with extra winter costs.
Payments usually start in November, similar to last year. Qualifying families will receive a letter before the payment is sent.
To be eligible, families must be receiving certain disability benefits, such as the highest rate of Child Disability Payment, Disability Living Allowance for Children, or enhanced rates of Personal Independence Payment or Adult Disability Payment. Eligibility is based on being in receipt of these benefits during the week of September 16-22, 2024.
Winter Heating Payment: £58.75
According to Social Security Scotland, payments will be issued from mid-December, allowing the majority of qualifying families to receive the payment before the end of February 2025. If you qualify, you will get a letter from Social Security Scotland before they provide the payment.
This payment can only be claimed by people on an income-related benefit residing in Scotland and switched to the £25 Cold Weather Payment provided by the Department for Work and Pensions (DWP) two years ago. Unlike the DWP benefit, this one is not based on a prolonged period of cold weather in a specific region, but rather a yearly, one-off payment provided regardless of the temperature.
Warm Home Discount: £150 Paid to Energy Providers
The DWP hands this payment directly to energy suppliers. It is then added as credit to customers’ accounts.
If you happen to be a credit customer the £150 will arrive on your electricity account and if you’re on Pay As You Go or Prepayment, a voucher that you can use to boost your meter will be sent to you.
The Warm Home Discount Scheme is meant to help those on a low income and on certain income-related benefits, including: Universal Credit or Pension Credit.
Carer Allowance Supplement: £288.60
These are usually paid automatically in December. Social Security Scotland will send out letters beforehand to confirm who may qualify for the payments.
The payments are administered by Social Security Scotland and made separately from Carer’s Allowance. To qualify for the next payment in December, people need to be in receipt of either Carer’s Allowance from the DWP, or the newly launched Carer Support Payment from Social Security Scotland, on October 7, 2024.
Christmas Bonus: £10
This bonus is frequently provided automatically in early December. It is a one-off, tax-free £10 payment made to those who qualify for the State Pension or those who claim other benefits during the qualifying week.
No application is required in order to get the extra £10 as it automatically goes into the account where you usually get your State Pension or benefit payment.
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