MARTIN Lewis has today urged the government to take action to tackle the cost of living crisis as households are warned of £4,000 energy bills.
The consumer champion has warned of extortionate hikes to energy bills in October on Radio 4’s Today programme.
Martin said: “Under the October price cap, prices will rise by 77% -meaning those on typical use will see their bill hit £3,500.
“Hikes like this will throw households into desperate situations.”
Martin said the political fallout following Boris Johnson’s resignation isn’t helping the situation.
He said: “We have a zombie government that can’t make any big decisions.”
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Households are grappling a crippling cost of living crisis – millions are paying out £2,300 more than a year ago on energy bills alone.
And that’s before you factor in other rises to broadband, fuel and food bills.
With bills forecast to hit £3,500 in October, Martin said the cost of living support package announced in May will not be “sustainable for the poorest homes”.
The cost of living package worth up to £1,5000 still doesn’t cover the extra £900 rises to energy bills seen since last October.
Martin urged Boris Johnson, Liz Truss and Rishi Sunak to sit round a table and take collective action now to give people some rest bite before energy bills spike in October.
Martin said that green levies and policies to cut VAT are trivial and largely unhelpful.
Instead he urged the the government needs to actively cut prices or put more money into people’s pockets.
Since March, the ex-Chancellor Rishi Sunak introduced a range of new support packages to help people across the country with the cost of living.
Depending on your circumstances you may be entitled to over £1,000 in support.
From money off your energy bills to the £150 council tax rebate in some cases you’ll have to apply for the cash – so make sure you’re proactive.
However, this support package was introduced at a time when the energy regulator Ofgem warned household that energy bills will soar to £2,800 in October – recent forecasts suggest households will have to pay another £700 on top of this.
To get the £650 payment, you will need to be in receipt of any of these eligible benefit payments as of May 25 this year, or have started a claim by this date and later be successful:
The total cost of living support is £650 but as it’s been split into two lump sums.
The Department for Work and Pensions (DWP) started paying the first half, worth £326, to those eligible on Thursday (July 14) – but it’s unlikely everyone will be paid the cash at the same time and you could be waiting until the end of the month.
You’ll have to wait until the Autumn to receive the remaining £324 on offer and the government are yet to announce any specific dates as to when this’ll be paid.
The energy discount will be dished out to households from October and payments will be paid in instalments over the successive six months.
The £400 payment will be delivered via your energy supplier.
Direct debit and credit customers will see their money credited to their account.
While customers with pre-payment meters will have the money added to their meter, or they will receive a voucher.
The £300 “Pensioner Cost of Living Payment” will be paid in November or December.
The payment is targeted at the eight million households that receive Winter Fuel Payment – which is already worth £100-£300.
You’ll qualify for the payment if you’ll be over state pension (66 or above and lived in the UK for at least one day during the week of September 19-25.
Six million disabled Brits will receive £150 to help with the cost of living in September.
These payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards.
To get the cash you must be receiving one of the following benefits (or have begun an eventually successful claim for one, as of 25 May 2022):
The rebate has been available to all eligible households since April 1 and local authorities have until September 30 to pay all eligible households.
Those who pay their council tax by direct debit should get the payment automatically.
Each council will have different systems, dates and processes to manage getting the payment to those who don’t pay their council tax by direct debit.
Most councils require that these households apply for the rebate on their local authorities website.
Applications allow your local authority to transfer the cash directly into your bank account.
If you didn’t apply in time, instead of being issued the £150 in cash, you’ll be credited the money to your council tax account and will see the amount come off your bill.
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Other councils have automatically sent households a Post Office voucher valued at £150 – which households can take to branch and withdraw the cash.
