As the cost of living continues to rise, it can be challenging to make ends meet. But don't worry, you're not alone in this.
The government has put together a range of schemes to help you manage your finances during these difficult times. In this article, we'll break down all the support available to you, so you can access the help you need.
With no more cost of living payments on the horizon, the Household Support Fund (HSF) is the main source of help available. It was originally meant to end on 31st March 2024, but will now continue until 31st March 2025.
The HSF is money given to local councils to support those in need in their area. Some of the schemes available include:
Councils have free rein to decide what support and schemes they provide using this money. So, the help on offer may vary from area to area. Check with your local council to find out what’s available and how to apply. You may need a reference from a debt adviser or a social worker to access some schemes.
The National Insurance threshold has been raised to £12,570 a year. This means you can earn more before having to contribute. While the rates of contributions may have changed due to other government policies, this change is designed to leave more money in your pocket.
Fuel duty cuts remain in effect, with the government having reduced fuel duty by 5p per litre to ease the financial burden on motorists. This lower rate will remain in place for the foreseeable future, providing some relief amidst fluctuating fuel prices.
It’s thought that as much as £19 billion of benefits money goes unclaimed every year. If you’re struggling with the cost of living, even if you think you earn too much to qualify for benefits, it’s worth checking to see if you could claim.
Try this benefits calculator by entitled to. Or, speak to a local benefits adviser to see what support you may be able to get.
If you already receive benefits, you may be able to get one of two types of interest-free government loans. These loans can help pay for essential costs. Depending on the benefits you receive, you may be able to get:
You will need to have been receiving a qualifying benefit for at least six months to be able to apply.
These loans can range from £100 to £812, depending on your circumstances. Other things that can affect your eligibility and how much you could get include:
Budgeting Loans and Advances are repaid through your benefits payments. This means that you will receive less in benefits until the loan is paid back. You usually have to repay the loan within two years.
Many charities provide grants – money that does not need to be repaid – to help people in need. Grants are generally given to people based on specific criteria. For example, you may need to have worked in a certain job or have a particular health condition. How much you can get varies between charities and the grants available.
You can find out more about grants you may be eligible for from Turn2us.
A number of energy suppliers have set up funds to provide help for those who are struggling with their bills. Each supplier’s schemes work differently, and eligibility criteria vary. So, it’s a good idea to contact your energy supplier to find out what help they might be able to offer.
If you have debt on a pre-payment meter, you could get up to £2,000 from the British Gas Individuals and Families Fund. You don’t need to be a British Gas customer to claim from this fund. But you will need to meet strict criteria. You may also need a referral from a debt adviser to be eligible.
There are many schemes that can reduce your Council Tax. These include:
Local councils run Council Tax reduction schemes. This means that the help available in your area may be different from others. Check with your local council to see if they offer these schemes or provide others.
If you’ve fallen behind on your bills or are struggling financially, it may help to get free, impartial advice. You can get this from:
Disclaimer: We make every effort to ensure that content is correct at the time of publication. Please note that information published on this website does not constitute financial advice, and we aren’t responsible for the content of any external sites.
Helen is a personal finance editor who’s spent 11 years (and counting!) in the finance industry. She creates content on everything money with the goal of getting people thinking – and talking – about their finances in ways they may not have done before.
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