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.
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)