Help with rising fuel costs?

Pippa12345

I'm confused about the government's announcement about help with the impending 54% rise in energy costs from April 1st .

I receive a means tested disability benefit which states this is the minimum amount the government says I need to live on. I also receive CTR and HB and thankfully I have applied for and received the warm home discount each year for the last few years which has helped hugely. I have managed financially but am seriously worried about the 54% rise in energy costs. Am I right in thinking that the government won't be providing any additional help with the rise in fuel costs on top of what I have been receiving for the last few years despite the large rise in fuel prices?

And if that's the case my benefit which is the minimum the government says that I need to live on suddenly won't meet the rise in costs of living?

I'll be turning my heating off on March 31st and am considering requesting removal of the gas meter so I don't get charged the standing charge or gas costs. I don't feel that I have any other choice unless there are things I am missing.

Thanks,

Pippa

jimjames

You'll get £200 towards the bills in October as well as the current warm home discount. 

If you remove the gas meter then you'll have to use electricity to heat which will be much more expensive.

Pippa12345

Thanks. I hadn't realised that I would get £200 in October. How will I receive that? That will really help. 

Without gas, I could just heat my bedroom and living room with thermostatic heaters so just two rooms. The £200 though is a relief and I may not need to disconnect the gas. 

EssexHebridean

As it stands at the moment it appears that the £200 will be delivered as a rebate on your bill in October, but you will then repay it at the rate of £40 each year for the following 5 years. While they're calling it a rebate, it feels more like a loan, to me. It will help in the short term, but relies on bills then decreasing by at least £40 i the following years to stop it making things more painful still when it is reclaimed by the look of it.  it is very early days on this though - more and differing information may emerge once they've had time to release the detail. 

mongoose2009

the govt is taking out a loan on your behalf

[Deleted User]

I think it's very unfair to offer this rebate by Council Tax Bands A-D as there are many people in Band E and/or higher who are cash poor.  We are Band E but our neighbours on either side are both Band D but their properties are much bigger than ours but have not been re-valued.  

Merlin139

[Deleted User] said:

I think it's very unfair to offer this rebate by Council Tax Bands A-D as there are many people in Band E and/or higher who are cash poor.  We are Band E but our neighbours on either side are both Band D but their properties are much bigger than ours but have not been re-valued.  

I do a bit of part time work and my employer lives in a Band C and I live in a Band E. He gets a rebate and I don't!

Pippa12345

I'm not at all keen on the loan idea. Can we refuse it? 

I avoid debt like the plague having worked at being debt free and paying back £40 a year may make energy costs in future even worse especially as energy costs are due to rise a further 20% in October on top of the 54% in April and it could well rise again in 2023 and then the loan repayments will be added on annually. 

Aylesbury_Duck

[Deleted User] said:

I think it's very unfair to offer this rebate by Council Tax Bands A-D as there are many people in Band E and/or higher who are cash poor.  We are Band E but our neighbours on either side are both Band D but their properties are much bigger than ours but have not been re-valued.  

I'm afraid that's a matter for your council, who clearly don't feel the need to re-assess the bands of your neighbours' houses.  You could grass on them, but that wouldn't help your own costs.

Council Tax is inherently quite crude, and previous attempts to reform it weren't popular (Community Charge arguably brought down a PM), but fundamentally, I don't think it's unfair that those in generally larger properties pay more.  

Being cash poor is too crude a measure, anyway.  I know a few people who are cash poor but have enormously expensive assets and debts by choice - large homes they don't really need, new cars, expensive holidays, etc.  Why should they receive a rebate above someone else much more careful with their expenditure?

luvchocolate

Properties tax bands usually change on sale of property, so if you do a massive extension you would pay no more...but upon sale the new owners get the shock of higher banding 

Aylesbury_Duck

luvchocolate said:

Properties tax bands usually change on sale of property, so if you do a massive extension you would pay no more...but upon sale the new owners get the shock of higher banding 

I didn't know that, thanks.  I thought I heard that some councils were using things like google earth and street view to cheaply scan for obvious extensions which they'd then follow up with visits, to re-band properties.  Might be an urban myth.