Insights ¦ Cost of living: Getting extra help

Key Take Aways

1. The UK government offers debt deferral schemes such as Breathing Space in England and Wales, and a similar Statutory Moratorium in Scotland, providing 60 days respite from creditor action to eligible individuals. Northern Ireland is exploring similar provisions.
2. Free debt advice is available through locator services like MoneyHelper, which connects consumers to local agencies and charities offering support.
3. Communications providers are mandated to consider customers’ financial situations, offering measures such as payment holidays, payment plans, and switching to social tariffs to mitigate disconnection risks.
4. Providers are expected to guide customers towards free debt advice services and allow representation by debt advisers with customer permission.
5. Service restrictions in telecoms may include restrictions to emergency outbound calls; disconnection is a last resort, especially for vulnerable customers.
6. Debt collection practices should be sensitive to vulnerable customers, with providers encouraged to understand individual circumstances before instructing debt collection agencies.
7. Social tariffs for broadband and phone services cater to those on means-tested benefits, with prices ranging from £10 to £24, offering unlimited, superfast broadband.
8. Consumers are advised to contact energy suppliers directly if facing bill payment difficulties, enabling access to better tariffs, hardship funds, or tailored repayment plans based on ability to pay.
9. The energy price cap in England, Scotland, and Wales limits the maximum cost per kWh, ensuring fair and transparent energy pricing for default tariff customers; Northern Ireland uses tariff review processes to regulate prices.
10. Cold weather payments provide an additional £25 weekly during winter for individuals on specific benefits in England, Wales, and Scotland; Northern Ireland offers winter heating payments instead.
11. Additional support may include local council aid such as the Household Support Fund, and targeted schemes for energy bill assistance in different regions.
12. Water and sewerage bills in Scotland are part of council tax, with reductions available via council tax rebates; in Northern Ireland, only non-domestic users face water charges, with additional free services for vulnerable groups.

Key Statistics

• Social tariffs for telecoms range from £10 to £24 per month, offering unlimited superfast broadband.
• The Cold Weather Payment provides £25 extra per week during periods of cold weather.
• Social tariffs can be switched easily and cost nothing to leave at the end of a contract.
• Water bills in Scotland are capped at 35% of the total bill through council tax reductions.
• Utility regulators in Northern Ireland restrict tariffs for electricity and gas, including profit caps.

Key Discussion Points

• The importance of government-backed debt respite schemes for vulnerable households.
• The role of telecoms providers in offering support options like social tariffs and flexible billing.
• The significance of free debt advice services and accessible locator tools for financial resilience.
• How service restrictions or disconnection risks are mitigated for vulnerable customers.
• The need for sensitive debt collection practices aligned with customer vulnerability.
• The impact of social tariffs on affordability of essential services.
• The procedures for consumers to access better energy tariffs and hardship funds.
• The functionality and regional variances of the energy price cap.
• The provision of winter support payments across the UK regions.
• The integration of water and sewerage costs within local council tax systems in Scotland.
• The availability of regional support schemes such as Household Support Fund.
• The broader importance of external support networks, including Citizens Advice and other charities, for vulnerable consumers.

Document Description

This article is an informational overview designed to guide the public through available support measures during the cost of living crisis across the UK. It consolidates key advice and schemes provided by regulators, charities, and government bodies, covering debt relief, social tariffs, energy support, water services, and regional assistance programmes. Aimed at empowering consumers, it highlights practical steps to access financial aid and protect essential services amid financial hardship.