DWP shares new update for people paying energy bills through benefit deductions ahead of October price rise

dailyrecord.co.uk:

Earlier this year, the Department for Work and Pensions (DWP) introduced a temporary change to the Fuel Direct scheme in order to protect people claiming benefits from soaring energy bills.

The change means that from April 1, 2022 to April 1, 2023, energy suppliers can no longer request new deductions or increased payments from a claimant’s benefit to pay for ongoing fuel consumption.

And, as millions of households brace themselves for what is expected to be a new price cap of almost £3,600 for those on a standard tariff from October, DWP has shared an update on the scheme.DWP said: “For claimants who pay for their ongoing fuel usage directly from their benefits, the amount they pay was not automatically increased if their bill went up in April 2022 and will not automatically increase when the price cap changes in October 2022.”However, DWP added: “If claimants use Fuel Direct and feel they are able to pay their increased bills, they should contact DWP to amend their existing arrangement.”DWP also advised anyone struggling to pay their energy bills to contact their energy supplier to discuss available options.Energy prices could spike at as much as £6,000 per year for the average household from next April, experts have warned.The cost of living crisis is only set to get worse between now and next summer, as consultancy Auxilione predicted that the price cap on bills will gradually rise by more than £4,000 in the next eight months.They said that the cap is expected to reach £3,576 in October, rising to £4,799 in January, and finally hitting £6,089 in April.The new forecast is an increase of £96 in January and £233 in April compared to the last one.The cap is currently at £1,971 for the average household, however,