£150 cost of living discounts for millions on 4 benefits after bill rise - but some miss out

£150 cost of living discounts for millions on 4 benefits after bill rise - but some miss out In blow today Ofgem said average power bills to rise to £1,723 - but if people on 4 DWP benefits failed to take action they will miss out on boost Households this morning were given a blow when regulator Ofgem raised its price cap to a three-year high. This means the price cap will rise by £60 per year – or £5 per month – to £1,723 for the average household using both electricity and gas if this level was sustained for a year. But there is help available - to millions who are on some of the biggest benefits in the UK. Energy customers have been told that 24 companies have signed up to a scheme which will give millions a £150 boost straight into their accounts. Every household where the billpayer is on means-tested benefits is in line for the rebate. In England and Wales, households in receipt of Housing Benefit, Income-related Employment and Support Allowance, Pension Credit and Universal Credit will be eligible – the same cohort as last winter. However some will miss out - there was a key deadline this month - August 23 - for people to make sure the person in the household who is on benefits is named on the power bill. If a household has failed to do this, then they will miss out on the £150 rebate. The following suppliers will be part of the winter 2026 to 2027 scheme: - 100Green (formerly Green Energy UK or GEUK) - Boost - British Gas - E - also known as E (Gas and Electricity) - Ecotricity - EDF - EnergyCoop – see Octopus Energy - E.ON Next - Fuse Energy - Good Energy - Home Energy - London Power - Octopus Energy - Outfox Energy - OVO - Sainsbury’s Energy - Scottish Gas – see British Gas - ScottishPower - So Energy - Square 1 Energy Ltd - TruEnergy - Tulo Energy - Utilita - Utility Warehouse On today’s bill rise Ofgem said the increase reflected higher wholesale gas prices as a result of the ongoing conflict in the Middle East, with volatile global markets remaining the dominant driver of price changes. Neil Kenward, Ofgem’s director general for markets, said: “High international gas prices are continuing to drive energy costs in the UK. “We welcome the Government’s intervention to remove VAT from electricity bills, without which customers would have faced even higher costs this winter. Savings are available by choosing a fixed tariff, which are available at £100 or more below the October price cap, and many suppliers offer tariffs with cheaper electricity to smart meter customers for electricity consumed out of peak times. “It’s also worth considering different payment methods, with prepayment customers paying the lowest price cap rates, and could save consumers an average of about £45 compared to direct debit.” The latest price cap is based on Ofgem’s updated definition of a typical consumer, which came into effect from July to reflect falling household energy use. It would be the equivalent of £1,941 per year based on its previous calculations, up from £1,862 currently. The increased October cap, which will remain in place for three months, will come into force as households start to increase their energy usage further by using their heating more regularly, adding to bills. In a further blow for households, analysts Cornwall Insight released their latest forecast on Wednesday for a further 9% increase to the price cap in the New Year. This would put an average January bill up to £1,872 a year, £149 higher than October’s £1,723. Energy Secretary Miatta Fahnbulleh said: “Families will be understandably concerned about the cost of energy bills this winter, which is being driven up by the Iran war. “Energy is an everyday essential and it needs to be affordable for everyone, which is why we have cut VAT on electricity bills from October, to give families some breathing space. “This has limited the rise in the price cap and follows the £150 in costs we removed from bills earlier this year, and we will keep looking at what more we can do to protect families from unaffordable bills.” Shadow energy secretary Claire Coutinho said: “Labour promised to cut energy bills by £300, but they have gone up by nearly £400 instead. “Our cheap power plan would cut energy bills for households and businesses by scrapping Government taxes and levies on bills, and it wouldn’t cost the taxpayer a penny. We have to put cheap energy first.” Ned Hammond, Energy UK’s deputy director for customers, said: “This latest increase is in line with the predictions and any such rise is always more worrying over the winter months when customers naturally use more energy. “Coming off the back of a significant hike over summer, this further intensifies the challenges faced by customers struggling to afford their bills. “As well as measures to improve targeted support, the Government needs to assess how to bring bills down over the longer term. “The impact the conflict in the Middle East has had on gas prices underlines why we need to move to using more of our own sources of clean energy. “But it’s equally true that we need to look at a fairer way of funding the policy and system costs that are also driving bills higher.”