Am I Eligible For Financial Support With The Cost Of Living?
It still is and will seemingly remain a hot topic for months to come. But the cost of living along with rising inflation rates continue to make it hard for individuals to make ends meet, let alone boost their savings and prepare for the future.
Thankfully, there is some financial help available that offers support with the cost of living. In this blog post, we will discuss who may be eligible for different options offered privately and through government schemes.
We will also talk about how you can claim this and what benefits you may see in the short and long term. If you're struggling to make ends meet, don't despair - help is available.
Universal Energy Discount
As part of Rishi Sunak's support package released in May 2022, £400 is being offered to help with rising energy costs.
As a universal scheme, it means all domestic customers are eligible to receive this discount from October. People can claim £66 a month for October and November 2022 with £67 a month following until March 2023.
While this will only make a dent for the majority of us, it is certainly a welcome offering considering the fact that energy bills are set to reach £5k a year in 2023.
Even if you are moving home, you can still benefit and will receive instalments in each property. For example, you could receive the first 2 in your current property and the last 4 in your new property.
Cost of Living Bonus
This sum of £650 will be offered to over eight million low-income households in the UK.
Split into two instalments of £326 and £324, this is available for families who are already receiving other benefits from or before 25th May 2022. This includes:
● Universal Credit
● Income Support
● Income-based jobseekers allowance
● Income-based employment and support allowance
● Tax credits
● Pension credit
● Child tax credit
This £650 is available on top of the £400 energy discount - so if you are eligible - make sure you sign up for it on the government website.
Council Tax Rebate
Many households will have already received this support with the cost of living. Local authorities were able to increase council tax by up to 5% in April 2022 in order to pay for local services and social care.
As a result, some individuals have felt the pinch of yet another increased annual cost. For those with a property in tax bands A to D, you would have been automatically eligible for this rebate.
If you pay by direct debit, it would also have automatically rolled across when the increase was brought into play meaning you wouldn't need to do anything to claim.
For those who don't pay by direct debit, you can apply for support via your local authority's website. This rebate offers a maximum of £150 off your bill and is available until April 2023. You do not have to pay this back.
Support With The Cost of Living For Pensioners
All pensioner households will receive an extra £300 to help them cover the rising cost of energy this winter.
This support is on top of the £200 million already being given to local authorities to support vulnerable pensioners with their energy bills. As the group who are disproportionately affected by rising costs, many do not claim the benefits and monetary help they are entitled to.
If you know someone who may need help with rising energy bills and could be eligible for pensioner financial support, go to the gov.uk website for more information.
Disability Cost of Living Payment
If you have a young child or someone in your family who is disabled, you may be eligible for support with the cost of living through the following schemes:
- The Cold Weather Payment Scheme
- The Winter Fuel Payment Scheme
- The Warm Home Discount Scheme.
However, as part of the same package implemented by Rishi Sunak. People with disabilities will be entitled to an extra £150 to help with other costs. If you currently claim any of the following benefits you may be able to receive this bonus:
● Disability living allowance
● Personal Independence Payment
● Attendance Allowance
● Scottish Disability Benefits
● Armed Forces Independence Payment
● Constant Attendance Allowance
● War Pension Mobility Supplement
Help With Mortgage Interest Payments
If you're struggling to make mortgage interest payments, there is some support with the cost of living available through the government.
You can claim this support if you're on a low income and claiming one of the following benefits:
- Universal Credit
- Income Support
- Income-based jobseekers allowance
- Employment and support allowance (income related)
- Pension credit (guaranteed credit)
- Tax credits - working tax credit or child tax credit
This may offer you loans on interest up to £200k of your mortgage. However, if you are already claiming pension credit, this amount falls to £100k.
This help is offered in the form of a loan which is interest-free for up to two years and is paid directly to your lender. You don't need to repay this until you've sold your home, transferred ownership or your mortgage term has ended.
There is no guarantee, unfortunately, that you will be offered this loan. However, if you are receiving any of the qualifying benefits you can still apply through the gov.uk website.
You cannot use this loan to pay back the amount you borrowed from the lender, insurance or arrears. It is only valid for interest repayments.
Managing Pension Risk
One of the best ways to ensure a comfortable retirement while keeping an eye on funds during these tough times is by diversifying your pension risk.
This can be done through products like annuities, which offer a guaranteed income for life. Informed Pensions can help you find the right annuity for your needs and provide support throughout the process.
We understand that each individual's circumstances are different, so we'll work with you to find a solution that meets your specific requirements. Contact us today to learn more about how we can help you secure your financial future.
Pension income can also be affected by interest rates when you withdraw. Any investments can go up and down in value so it is important to remember that past performance may not reflect your outcome down the line.
A pension is a long-term investment. The fund value may fluctuate and can go down.
Your eventual income may depend on the size of the fund at retirement, future interest rates and tax legislation.
Conclusion
There is a range of help available to support with the cost of living in the UK. Whether you are struggling with energy bills, council tax or mortgage payments - there are several schemes and packages on offer from the government that may take the edge off.
If you think you may be entitled to financial support, visit the gov.uk website for more information or speak to a professional who can offer impartial advice.
Informed Pensions offers free guidance and support to ensure that you make the most of your retirement savings and have a comfortable retirement. We can ensure you are aware of every bit of tax relief and savings boosters you may be eligible for so you can maximise funds for the future. Contact us today for more information about our services.
