Important costs like energy, food and rent are rising. Lots of people are cutting costs or using credit to get by. Many are falling behind with payments. But there is help out there.
What can I do?
- Make a budget and see which bills are the most important
A budget is a list of all the money you have coming in and going out in a month.
It can help you:
- See where your money is going
- Figure out what bills to prioritise
- Spot places to save
Read our guide to making a budget.
Read our guide to priority bills.
- Find out if you can increase the amount of money you have coming in
Are you claiming all the benefits you can?
Could you sell old clothes or take on a second job?
Use our free benefits calculator to check what benefits you can claim
- Look at ways to spend less
Read our tips to save money or increase income.
Visit our emergency funding page for information on foodbanks and more.
Energy price cap changes
The energy price cap is increasing by 10% in October 2024. This impacts unit rates only.
What is a unit rate?
The unit rate is how much you pay for what you use.
Your standing charge is a fixed amount you pay every day.
Your energy bill is made up of both these figures.
The average standing charge for gas and electricity is £300 a year, or £25 a month.
What does the new energy price cap mean for my bill?
How much you pay for your total bill depends on what you use and how you pay.
For example:
Monthly direct debit
The unit rate cap is rising to £1,717 a year, which is £143 a month.
This means your total monthly bill could be £168 if the standing rate is £25.
Prepayment
The unit rate cap is rising to £1,669, which is £139 a month.
This means your total bill could be £164 if the standing rate is £25.
Pay as you go
The cap is rising to £1,829, which is £152 a month.
This means your total monthly bill could be £177 if the standing rate is £25.
Prepare for these changes by:
Government help with the cost of living
Households that receive the Winter Fuel Payment get this on top of any other support.
This payment is tax-free and does not affect any other entitlements.
Most people are paid by direct debit.
The government no longer offers crisis loans.
You can apply for a budgeting loan instead.
You may be able to get this if you have an unexpected expense.
You must have been on one of these benefits for at least 26 weeks:
- Income Support
- Income-based Jobseeker's Allowance
- Income-related Employment and Support Allowance
- Pension Credits
You can use budgeting loans to help pay for things like:
- Furniture
- Appliances
- Moving costs
- Maternity expenses
- Travel costs
The amount you apply for depends on your situation.
Repayments come out of your benefits.
Hardship payments are for people who:
- Have had benefits sanctions
- Cannot pay their essential bills
Hardship payments apply to these benefits:
- Universal Credit (UC)
- Jobseeker’s Allowance (JSA)
- Employment and Support Allowance (ESA)
Read our guide to hardship payments and how to apply.
You may be able to apply to have your benefits paid early.
Repayments are:
- Taken from future benefits
- Over about 12 weeks
You can get a short-term benefit advance if:
- You need money before your first benefits payment is made
- You need money before your benefits go up
- Your benefits will not be paid on its due date
You can apply for most benefits through your local Jobcentre Plus.
Read our guide to claiming benefits.
The government announced in September 2024 that the Household Support Fund is extending for another six months.
Local councils may be able to help with essential costs.
It is for anyone who is:
- Vulnerable or
- Unable to pay for basics, including:
- Food
- Bills
Check with your your local council, as they all have different criteria.