Government expected to announce a cost of living support package today, which could include hundreds off your energy bill
The chancellor is expected to provide further support for households as the costs of living continues to cripple budgets. Here’s what we know so far


According to reports, Chancellor Rishi Sunak is expected to announce a £10 billion cost of living support package today (Thursday), which could include a £400 grant for cash-strapped households battling rising food, energy and fuel costs in the current cost of living crisis.
The £400 grant could replace the £200 energy bill 'rebate'.
This comes on the back of news that the energy regulator Ofgem is predicting a whopping 42% rise in the energy price cap in October.
This could add an average of £800 to household energy bills, taking the average annual household energy bill to around £2,800 and tipping nearly 10 million households into fuel poverty according to the Resolution Foundation. (opens in new tab)
“The sheer scale and depth of Britain’s cost-of-living crisis means the Government must urgently provide significant additional support”, says Jonny, Marshall, senior economist at the Resolution Foundation (opens in new tab).
“The fact that the crisis is so heavily concentrated on low-and-middle incomes households means it’s clear how the Government should target policy support. The benefits system is clearly the best route to support those worst affected in the short term – be that via an early uprating or lump sum payments to help poorer households get through the difficult winter ahead”.
What financial help could households expect from the Chancellor?
We don’t yet know the details of the Chancellor’s cost of living support package, but it could include help with fuel bills, in addition to the £200 energy bill rebate already promised to 28 million households across England, Scotland and Wales in October.
There could be an increase in the Warm Home Discount Scheme - aimed at low income households, this is currently £150, but could go up to £500.
A planned increase in benefits, expected this summer, along with the promised 1p cut in income tax, due to take effect in 2024, could be introduced earlier than planned.
Sue Anderson at StepChange debt charity says they want to see targeted support for vulnerable households who are having difficulty making ends meet.
“This would include uprating benefits in line with inflation, pausing benefit deductions and enforcement action on energy debts, and increasing energy bill support by expanding the Warm Homes Discount”.
“Unless the government’s announcement includes measures targeted at those on the lowest incomes, many will face mounting problem debt and destitution that will only escalate as prices continue to rise.”
Where will the money come from to cover the cost of living support package?
Funding for this multi-billion pound support package could be generated via an energy windfall tax.
This has previously been a hot potato of controversy, with Labour calling for its introduction, and the prime minister previously having opposed it.
If a windfall tax is introduced, it could be levied on the big energy suppliers, including North Sea companies and windfarm operators and electricity generators.
Sue Hayward is a personal finance and consumer journalist, broadcaster and author who regularly chats on TV and Radio on ways to get more power for your pound. Sue’s written for a wide range of publications including the Guardian, i Paper, Good Housekeeping, Lovemoney and My Weekly. Cats, cheese and travel are Sue’s passions away from her desk!
-
-
How to find cheap flights
Ever got on a plane and wondered if you’ve paid more for your ticket than the person next to you? Here’s how to bag the cheapest flights every time.
By Sue Hayward • Published
-
Energy bills predicted to go up - should you switch to a fixed price energy tariff?
With energy prices forecast to rise by 51% this autumn, we look at whether it's worth switching to a fixed tariff and what to do next
By Kalpana Fitzpatrick • Published
-
The £150 disability cost of living payment: who will get it and when?
Six million disabled people will get £150 as part of the Chancellor’s £15 billion cost of living support package. Here’s what you need to know about the £150 disability payment and when it will be paid.
By Sue Hayward • Published
-
How to contest a will
There will be times when contesting a will is the right thing to do. But how do you go about challenging the contents of a will?
By Sue Hayward • Published
-
National Insurance: What’s happening in July and what does it mean for your pay packet?
Millions of workers can expect an income boost from 6 July as the change to the National Insurance threshold comes into force. We explain what it means for you
By Sue Hayward • Published
-
Should you buy extended warranties?
Which? brands extended warranties ‘worthless’ - we explain why it’s not worth paying for them when buying gadgets and electrical goods
By Sue Hayward • Published
-
How to cut working from home costs
With many of us now working from home for at least part of the week, we highlight the simple steps you can follow to save money when working from home
By Ruth Jackson-Kirby • Published
-
Flight cancellations: what are your refund rights?
Strikes by airline workers look set to cause a summer of flight cancellations and chaos at airports across the country. We explain your rights, how to claim a refund and compensation
By Ruth Emery • Published
-
Inflation hits 9.1% - what it means for you
Prices hit 40-year high, adding more pressure to household budgets as food, energy and fuel costs continue to go up
By Kalpana Fitzpatrick • Published
-
What is travel insurance and why you need it
Planning a holiday? Travel insurance is a crucial safety net to protect against something going wrong with your trip. Here’s our guide on everything you need to know about getting the right cover for you
By Katie Binns • Published