Everybody is aware of the current situation in the energy market. First, the energy crisis in the second half of 2021 put huge upward pressure on energy bills because of macroeconomic factors. Then in 2022 the Ukrainian war further increased the prices in the energy market. The energy price cap has risen from around £1,271 in October 2021 to £1,977 in April 2022. The predicted value for October 2022 lies around £2,800. To help households with these surging costs, the UK government has set up several schemes to provide support to households that struggle. We have a guide below with an overview of the available grants at the moment.
Published on: 22-07-2022

What does Ofgem do to help you pay your bills?

If you are in difficulty paying your bills, always contact your energy supplier to discuss. Ofgem requires each supplier to offer payment plans that their customers can afford. Another option that Ofgem has required energy suppliers to offer is the so-called (HHCRO) Home Heating Cost Reduction Obligation. This solution requires energy suppliers to fund the installation of energy-efficient appliances in UK households to help consumers save on their energy bills. Examples could include insulation and heating solutions. People who are eligible for the Warm Home Discount will also be eligible for the HHCRO. If you don’t receive the Warm Home Discount but do receive one of the benefits below, you are also allowed to participate in the scheme.

  • Income Support
  • Universal Credit
  • Income-based Jobseeker’s Allowance
  • Housing Benefit
  • Universal Credit
  • Pension Guarantee Credit
  • Pension credit saving credit
  • Tax credits
  • Child Benefit
  • Income-related Employment and Support Allowance
  • Pension Guarantee Credit

Always contact your supplier to check what the options are for the installation of energy-efficient appliances and how they can assist in the process.

The green deal loan to fund energy efficiency in your property

The green deal is a program that helps you identify the available options to help improve the energy efficiency of your house. Options that can often improve your energy performance are insulation, draught-proofing, and double glazing. Through the green deal, you will be assisted in the entire process of choosing the right improvement for your specific situation to the payment options to finance these. There is also a possibility of a loan for certain bigger investments but mind that these need to be repaid

Government schemes

The government provides the following schemes. Not all will apply to you so always check to make sure you are eligible for the scheme.

  • Winter Fuel Payment: This scheme provides all people that were born before or on the 1st of October 1954 with a fuel repayment of between £100 and £300
  • Warm Home Discount: £150 discount on energy bills for low-income households and pension credit receiving households.
  • Cold Weather Payment: The government pays £25 per 7 days of cold weather between November and March.
  • Household support fund: A funding measure that will help vulnerable households this winter
  • Energy grant: a £400 grant that will be sent to all UK households by their energy supplier.
  • Cost of living allowance: £650 payment for 8 million low-income households to help them pay their bills.

Get paid to generate your own renewable energy.

There are also options to receive funds to generate your own renewable energy. This way, you get some extra income and also cut down on your energy consumption at energy suppliers.

  • Boiler upgrade scheme: £5,000 or £6,000 to install a low carbon heat pump installation to power your property.
  • Feed-in Tariff: Property owners with an installation that can produce solar, hydro or wind energy or any installation with a combination of these energy forms is potentially eligible for feed-in tariff payments by Ofgem.
  • Smart export guarantee: Similar to the feed-in tariff where your generated energy from any renewable energy installation will actually be bought from you by Ofgem.

For more information check the Ofgem website.