Since the revision of the mini budget on the 17th October 2022, the Government has announced that their support for energy bills (the new Energy Price Guarantee) will now only last until April 2023 when it will then be reviewed. Originally the Energy Price Guarantee (which capped the unit prices for gas and electricity) was to be in place for 2 years.
Furthermore, the Government has announced their Help For Households campaign. The campaign is set to act as a ‘tool kit’ for those struggling with the cost of living. It sets out the help which is available and how you can check your eligibility for this. Learn more about Help for Households in our guide here.
From energy bills to food price increases the cost of living is rising, putting additional financial strain on households across the UK. If you are worried about the cost of living there are various options to support you. Read on as we explore help with the cost of living, from government support to debt solutions.
Help with the cost of living
No matter your financial situation, the financial cost of living is having an impact, forcing us all to tighten our belts. Cutting back and saving money regularly is a good way to help with the rising cost of living and prevent rising costs pushing you into problem debt.
Read our savings tips guide for handy tips to help you put a few pounds aside.
With inflation at an all-time high and the energy price cap set to rise by 54% come April, the government have intervened with some support.
Introducing council tax rebates and a loan on energy bills alongside the pre-existing warm home discount, there are several measures set out by the government that intend to ease some of the pressure brought about by the cost of living.
For those on low income, out of work or with children there are numerous benefits available. Benefits can help to boost your income and support your living costs.
If you need help with living costs check to see if you are eligible for any benefits using a benefits calculator.
Debt solutions and the cost of living
Although the above solutions can help with the cost of living, if you are worried the rising cost of living could push you into problem debt then a debt solution may be the best option for you. There are different debt solutions depending on your circumstances.
The Debt Respite Scheme (Breathing Space) offers individuals legal protection from creditors for up to 60 days for those trapped in problem debt. This means creditors cannot contact you and you cannot be charged interest on your debts during this period.
You can find out more about Breathing Space here.
Debt management plan
A flexible and informal way of helping you manage your debts, a debt management plan involves us working out a budget with you which includes all of your essential household expenses such as your rent, mortgage, utilities and food shopping. The money that is left over, your disposable income, will be used to pay your creditors.
You can find out more about debt management plans here.
Individual Voluntary Arrangements (IVA)
An Individual Voluntary Arrangement (IVA) is a legal agreement that allows you to “freeze” your debt and agree to pay them back over a period of months or years. Any money you owe thereafter this period is then written off.
You can find out more about IVAs here.