The government announced financial support to help with the cost of living crisis on 26 May 2022, including a £400 grant to all households towards their energy bills and an additional targeted £650 payment for those on the lowest incomes1. Which?, the consumer organisation, responded to the announcement the same day through Rocio Concha, its Director of Policy and Advocacy1.
Concha said the £400 grant "will bring relief to many people" and described the targeted £650 payment as positive, saying it would "help prevent them falling into fuel poverty"1. She also pointed to the prospect of "a further hike of around £800 to the price cap", which she said would have caused serious concern for families already struggling to make ends meet1.
The support measures are set against that expected rise in the price cap. Which? said the success of the measures would be judged on whether financial help is getting to, and continues to help, the most vulnerable through the cost of living crisis1. The organisation also called on Ofgem to move quickly on its pledge to take tough action against energy suppliers that are charging people too much for direct debits1.
The announcement covers two distinct forms of support: a universal grant paid to all households, and a means-tested payment directed at those on the lowest incomes. Which? did not set out in its response how either payment would be delivered, when it would be paid, or how households would qualify. Those details have not been reported.
| Measure | Amount | Who it covers |
|---|---|---|
| Energy bills grant | £400 | All households |
| Targeted payment | £650 | Those on the lowest incomes |
Why it matters for households
The two payments address different parts of the pressure on household budgets. The £400 grant is universal, so it reaches every household regardless of income, while the £650 payment is targeted at those on the lowest incomes, where the risk of fuel poverty is greatest1. For a household's energy independence, the practical effect of a grant is to reduce the amount of a bill that has to be met from income or savings, but it does not change how much energy a home uses or how exposed it is to future price movements. The expected further rise of around £800 to the price cap is larger than either payment on its own, and for households receiving only the universal grant it is larger than the two combined1.
Which? framed the test of the measures as whether help reaches the most vulnerable and continues to do so, rather than whether the payments are announced1. It also raised direct debits as a separate concern, with Ofgem under pressure to act against suppliers charging too much1. Households dealing with energy debt or a supplier dispute can find routes through crisis funds, hardship grants and energy debt help, and the wider question of how grants affect a home's energy independence is set out in grants, schemes and household energy independence. Because grant announcements attract imitation, energy grant scams and fake government schemes explains how to check whether an approach is genuine.
What happens next
Which? said the success of the measures will be judged on whether financial help is getting to and continues to help the most vulnerable through the cost of living crisis1. It called on Ofgem to move quickly on its pledge to take tough action against energy suppliers charging people too much for direct debits1. No dates for payment of either the £400 grant or the £650 payment are given in the announcement as reported.