October 2024 money changes: Rising energy bills and targeted DWP support
From October, a raft of financial changes will hit millions of households. Keeping abreast of these shifts, who they affect and when can be a daunting task.
As the chill of winter draws near, the Government typically starts to extend support to the most financially vulnerable households. However, other alterations may lead to people being out of pocket, compelling families to tighten their belts just as they begin to crank up their heating and start preparing for Christmas, the most expensive time of year.
Some of these fiscal adjustments will primarily impact low-income households, such as those on benefits, while others will affect pensioners. Here's a summary of some of the changes you can anticipate in the upcoming weeks, reports Birmingham Live.
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Energy bills
In yet another setback for millions of households, energy bills are due to climb again from October. The regulator Ofgem has hiked the Energy Price cap, resulting in average bills rising by £149 annually.
The rate at which households will experience the effects of this increase hinges on how they settle their bills. Those who pay via direct debit may not see an immediate surge, but suppliers are likely to ramp up bills further down the line.
You could save money by switching to a fixed-rate tariff from variable rate but it depends on usage so it's worth shopping around and doing comparisons.
Winter Fuel Payments
Winter Fuel Payments, potentially worth up to £300, were previously allocated to all pensioners. However, they are now being phased out for everyone except the most impoverished.
This year, only those receiving Pension Credit and some other benefits will be eligible for support. Charities have voiced concerns that this could leave approximately two million pensioners who narrowly miss the qualifying threshold struggling to cope this winter.
Thousands of pensioners do not claim Pension Credit despite being eligible, meaning they risk missing out on winter fuel money to which they are entitled.
Warm Home Discount
The Warm Home Discount scheme, which provides some of the poorest pensioners and households with a one-time £150 reduction in their bills during winter, is set to launch again from October.
The discount can be applied at any point between October and March, with energy companies deciding when to implement it. Pensioners who receive the Guarantee Credit element of Pension Credit qualify, as do some people on benefits like Universal Credit if they also have high energy costs.
This is determined by energy companies. Those who qualify for support will receive letters.
Household Support Fund and Cost of Living Payments
Local councils will be making cost of living payments through the Household Support Fund (HSF). The fund, which is financed by the Government, has been confirmed to extend into the winter.
While some councils may kick-start their funds from October, others might not do so until nearer to Christmas. Households are encouraged to visit their local authority's online cost of living support pages for comprehensive information. When they open later this year, they will be found here for North East Lincolnshire Council and here for North Lincolnshire Council.
This is where applications can be submitted once the fund is available. Generally, applicants need to show that they are undergoing financial strain and struggling to afford essential items like food, gas, and electricity.