Energy bills: £2m fund opens to help families tackle fuel costs

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Woman examines energy meterImage source, Getty Images
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The scheme is expected to benefit 20,000 families

A new emergency winter fuel payment scheme has opened for applications.

In December, the Department for Communities announced that £2m would be available for extra emergency payments to help those most affected by rising fuel costs.

About 20,000 households are expected to benefit from the scheme.

Pat Austin, from the Fuel Poverty Coalition, welcomed the move but says £2m "in the face of this crisis is really nothing".

She called it a "disappointing" amount of money and called for it to be at least doubled and for a taskforce to be set up.

Successful applicants to the scheme will receive a one-off payment of £100 worth of gas, oil or electricity.

Full eligibility criteria, along with the application process, has been published by the Bryson Charitable Group, external, which is helping oversee the operation of the scheme.

Image source, Getty Images
Image caption,

Eleven companies from across the energy sector have pledged more than £250,000 in donations to the scheme

Households have seen energy bills increase due to supply and demand on the global wholesale market.

This has driven up the amount providers pay for gas and electricity - and that cost is now being passed on to the consumer.

The Consumer Council welcomed the scheme and its chief executive Noyona Chundur said: "We are delighted to have facilitated the establishment of a scheme that will help ease the heavy burden of energy price rises for 20,000 households this winter."

Eleven companies from across the energy sector have pledged more than £250,000 in donations to the scheme.

The scheme will close for applications on 31 March 2022.

A Department for Communities spokesperson said it was a global fuel crisis and support was provided through the affordable warmth Scheme, cold weather payments, discretionary support and the winter fuel payment.

"The vast majority of this year's winter fuel payments have been issued and to date 290,632 people have received their payment, with a total value of £51.7m.

"The £2m additional funding will be welcomed by many and is vital in providing emergency financial support to thousands of vulnerable families."