EH - Essex > Hebrides...the next step of the adventure?

enthusiasticsaver

I am not sure what the answer is re energy costs but a loan does not seem to be a great solution and relies on prices coming down in the medium term. Those who will struggle will find the little help offered not enough to stop them having to make the decision heat or eat I suspect. Maybe the answer is a bigger discretionary fund for those who are vulnerable or on very low income. 

We are able to afford it but even those on middle incomes will find it tough with the NI raise from April. My DD2 has just switched shopping from online to Lidls to claw money back from groceries to offset the £100 monthly increase on their energy bill and they have two fairly good salaries. It will be even worse after the cap raise. 

milann

I’m with you that the fuel levy  is the least of the bad options. How much would an opt in or out scheme cost to administer. The worry is that the cost of fuel doesn’t go down as predicted. Something else can be looked into when that comes into fruition- not ideal but there are so many unpredictable things in the mix and nobody can foresee the future. At least this way nobody falls through the net and a one off tax on the companies making obscene profits can be considered for the future.

Your spends on food for the month are looking good as you always seem to have delicious grub in the menu 👍

RelievedSheff

I believe the council tax rebate will be applied to the next council bill so people won't see the physical money, more they will get a discount on next years bill and then a shock the year after when not only are they paying the full non discounted price but also a circa 5% increase on that.

I know that these schemes are set up in good faith with the intention of helping people. But I foresee people being in more financial difficulty once these schemes draw to a close. I don't see that are are providing the help intended.

EssexHebridean

Our local Council made a huge deal about having just "passed the UK's biggest ever council tax cut" in their recent meeting - they'd already announced a £55 cut for this year and are now claiming the additional £150 as well with the inference being that it's also down to them, and that they could somehow have declined to give it... I did point out that on that basis I hoped they'd realised that at about this time next year, the chances are they might also have to announce the UK's biggest ever council tax INCREASE...oddly enough they went a bit quiet at that point...   I thought from what our lot had said it was going to be applied that way RS - but seemingly not according to Martin. It's being paid directly to people via the details used for the DD.  I'll dump ours straight into the buffer account I've set up for the energy cost increase, but a lot of folk simply won't have the ability to do that. I think you're right about people being hit hard once those sorts of schemes are over too - you only have to look at the uproar that was caused by the end of the temporary increase to UC that was put in place. The problem is that a good proportion of people who are reliant on that sort of scheme then forget that they need to be able to adjust things back again when the benefit from it stops - or in the current situation I suspect thanks to cost of living increase, they're simply unable to. 

Link to the MSE item confirming it being paid by bank transfer: https://www.moneysavingexpert.com/news/2022/02/some-households-could-get-up-to-p350-in-a-council-tax-to-deal-wi/

RelievedSheff

That does seem to suggest it is paid separately. I'm sure I have seen elsewhere that is was to be applied as a discount to next years council tax bill. Will see if I can dig it out.

Sunshine_girl2

My council website says it is paid into your bank account . If it is I am following you EH and putting it into my extra fuel savings . 

EssexHebridean

RS our council have been hinting that they plan to take it proportionately off each monthly payment - so it'll be interesting to see what they end up doing.  SG2 I definitely think that's a good plan. Just feels safer somehow. 

I've made a £10 extra payment to EDF on the gas account today to balance out the amount their too low DD sum will be leaving us short. I've also re-set the DD at £10 a month - or at least requested to - as that should then leave us perhaps just a tiny bit in credit going into October and the next cap change. Hopefully they'll approve that and it'll happen ready for next month. 

Staffordia

I am dreading the energy price rises, our monthly bill is already nearly £180 p.m.  This is mainly due to my OH's 87 year old mother who lives with us, needing the heating on 21 degrees day and night (for when she has to get out of bed in the middle of the night).  She doesn't believe in putting a cardigan on indoors, and as she is paying a third of the bill thinks that it is acceptable.  Drives me mad, especially as I am prone to hot flushes.  At least my OH has made it clear she needs to dress for winter even indoors.

We don't benefit from the CT rebate either, as we are above the bands chosen.

Paspatur

enthusiasticsaver said:

 

We are able to afford it but even those on middle incomes will find it tough with the NI raise from April. 

I don't understand the NI part of this comment as I no longer know what middle income means
I did a calculation for various scenarios:
My income before retirement £86k - an extra £955 a year - would I have noticed - no
My income now part time post retirement for a charity £10.5k - an extra £11 a year - will I notice it  - no
2 people on middle income (is that £45k each) an extra £443 a year each - they may notice it but their income is still high
Person on minimum wage £18,525 an extra £112 per year - you better believe they will notice it on top of increased fuel bills
And the charity I work for will also notice the employers NI increase on top of fuel bills increasing by 50% and more while suffering cutbacks on funding as our funders also suffer increased costs and goverment cuts

RelievedSheff

I think the majority of people no matter if they are low paid, middle income or any other bracket, will not fail to notice the rising cost of living and NI increase. Budgets will be squeezed across the board.