Government Support Measures for Cost of Living Issues in 2023-24
Government support initiatives for cost of living challenges in 2023-24 include extending the Energy Price Guarantee, Cost of Living Payments for various beneficiary groups, benefit cap increases, Household Support Fund extension, Council Tax flexibility, and new grants like the Energy Bill Support Scheme and Alternative Fuel Payment. These measures aim to alleviate financial burdens on households and enhance financial resilience in the face of rising living costs.
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NAFAO Cost of Living issues Robbie Rainbird Assistant Director Community Financial Resilience
Government support and grants Review of the Energy Price Guarantee (EPG): From April 2023, the government has extended the EPG, which places a limit on the price households pay per unit of gas and electricity. This means that a typical household in Great Britain will pay on average 2,500 per annum until end of June 2023. Cost of Living Payments: Households on means-tested benefits will receive an additional 900 Cost of Living payment in 2023-24. Pensioner households will receive an additional 300 Cost of Living payment, and individuals on disability benefits will receive an additional 150 Disability Cost of Living payment in 2023-24. First part of 900 will be paid 25 April to 17 May. Uprating of benefits: Benefits will be increased in line with inflation, measured by September CPI which is 10.1%. Raising the benefit cap: The benefit cap will be raised by 10.1%, in line with September CPI. from April 2023. In Greater London, the benefit cap for families will rise from 23,000 to 25,323 and for single adults from 15,410 to 16,967. Household Support Fund 4: 1 billion to extend the Household Support Fund in England over 2023-24. The Fund is administered by local authorities who will deliver support to households to help with the cost of essentials. Grant over a 1- year period this time rather than previous grants that were for 6 months. Council Tax flexibility: The government is giving local authorities in England additional flexibility in setting council tax by increasing the referendum limit for increases in council tax to 3% per year from April 2023. In addition, local authorities with social care responsibilities will be able to increase the adult social care precept by up to 2% per year. Social housing rents in England will rise by a maximum of 7% in 2023-24.
New government grants for 2023/24 Energy Bill Support Scheme Alternative Funding Aimed at those households who do not pay their energy bills directly to their suppliers and therefore did not receive the 400 support in 2022.23. Scheme runs to 31 May 2023. Application will be via gov.uk, then passed to the LA to do some checks and make payment if eligible. You may be eligible to apply if your main home is: a residential park home on a boat on a permanent residential mooring on a permanent Gypsy and Traveller site part of a heat network without an electricity meter in social or private rented accommodation which has a business energy connection or a communal electricity supply off the mains electricity or gas grid in a care home or assisted living facility and you pay for some or all of your care (directly or through loss of pension or other benefits) in a separate domestic home within a non-domestic property (such as a farmhouse or a flat above a shop)
New government grants for 2023/24 Alternative Fuel Payment You may be eligible for a 200 Alternative Fuels Payment (AFP) if both the following are true: your household is not connected to the mains gas grid you use alternative fuels as your main form of heating Application will be via gov.uk, then passed to the LA to do some checks and make payment if eligible.
New government grants for 2023/24 Council Tax Support Fund The government has announced a further 100m of additional funding for local authorities to support the most vulnerable households in England. The discount should apply to current LCTS claimants that have an outstanding council tax liability for the 2023-24 financial year. Government expects councils to deliver this using their discretionary powers under s13A(1)(c) of the Local Government Finance Act 1992. Islington example - Islington will receive 665,089 for 2023/24 Households on CTS as of 1 April 23 will receive up to 35 off their bill after CTS applied, if their liability less than 35 after CTS will reduce bill to zero. This has been applied to council tax bills Over 19,000 households have received this support for 2023/24
Charging for care and support LAC 23/24 Charging for care and support: local authority circular - LAC(DHSC)(2023)1, confirmed that; Capital limits frozen at 14,250 and 23,250 The PEA or local authority-supported care home residents increases in line with inflation to 28.25 per week The minimum income guarantee (MIG) for people receiving local authority-arranged care and support other than in a care home increases in line with inflation The Savings Credit disregards increase in line with inflation. These rates apply to individuals receiving care in a care home, their own home, or another setting
Cost of living issues impacting on ASC charging NAFAO DRE guide produced for 2023/24 Discussion for tables and to feedback What current cost-of-living issues are you experiencing that are impacting on your financial assessments? Are there any changes to the annual DRE guide you would like to see? Are there additional items that we could be agreeing a best practice approach to?
