Daily Junction.mobi portalNews · June 8, 2026 · Daily Junction Editorial Team · 8 min
From energy bill support to council tax rebates, here's a guide to the cost of living help available in the UK in 2026 and how to access it.
The cost of living crisis that began in 2021 has eased slightly, but millions of UK households still face high energy bills, rising rents, and stretched budgets. The government, local councils, and charities have introduced a patchwork of support schemes to help, but navigating them can be confusing. Some are automatic, others require an application, and eligibility rules vary by scheme and location. Here is a guide to the cost of living support available in the UK in 2026, who qualifies, and how to claim it.
Energy bills remain one of the biggest household costs, and several schemes provide help.
The Energy Price Guarantee (EPG) caps the unit price of gas and electricity for households on standard variable tariffs. As of 2026, the EPG is set at a level that means a typical household using average amounts of energy pays around £1,900 per year (though actual bills depend on usage).
The EPG is automatic — you do not need to apply. It is applied by your energy supplier and appears as a discount on your bill. The cap is reviewed quarterly by Ofgem, the energy regulator, and can go up or down based on wholesale energy prices.
The Warm Home Discount is a £150 discount on electricity bills for eligible households, paid between October and March each year.
You qualify automatically if you receive the Guarantee Credit element of Pension Credit. The discount is applied to your electricity bill (or, if you use a pre-payment meter, you receive a voucher).
If you are on a low income but do not receive Pension Credit, you may still qualify under your energy supplier's broader group criteria, which consider income, benefits, and household circumstances. Eligibility varies by supplier, and you usually need to apply between October and December. Check your supplier's website for details.
The ECO4 scheme provides grants to improve the energy efficiency of homes, including insulation, boiler upgrades, and heating system replacements. The scheme is aimed at low-income households and those living in poorly insulated homes.
You may qualify if you:
The work is carried out by energy suppliers and their contractors, and you do not pay upfront. Contact your energy supplier or use the government's Simple Energy Advice service to check eligibility and find an installer.
Council Tax Support (also called Council Tax Reduction) can reduce your council tax bill by up to 100% if you are on a low income or receive benefits.
Eligibility and the amount of support vary by local authority. In England, each council sets its own scheme. In Scotland and Wales, the schemes are more standardised.
You may qualify if you:
To apply, contact your local council. Most councils have online application forms. You will need to provide proof of income, benefits, and household circumstances.
If you live alone, you may also qualify for a 25% single person discount, which is separate from Council Tax Support and applies regardless of income.
The government has made cost of living payments to households on means-tested benefits in recent years. These are one-off, tax-free payments designed to help with rising costs.
As of 2026, the government has not announced whether cost of living payments will continue. Previous payments included:
If cost of living payments are announced in 2026, they will be paid automatically to eligible households — you do not need to apply. Check GOV.UK for the latest announcements, usually made in the Budget (March) or Autumn Statement (November).
Pension Credit is a benefit for people over State Pension age (currently 66) on low incomes. It tops up your weekly income to a minimum level (£201.05 per week for single people, £306.85 for couples, as of 2024–25 rates).
Pension Credit has two parts:
Pension Credit is important because it unlocks access to other benefits, including:
Around 800,000 eligible pensioners do not claim Pension Credit, according to government estimates. If you are over State Pension age and have a low income, check your eligibility on GOV.UK or call the Pension Credit helpline on 0800 99 1234.
If you are on a low income or out of work, you may be eligible for Universal Credit or legacy benefits (such as Income Support, Jobseeker's Allowance, or Employment and Support Allowance).
Universal Credit is a monthly payment that helps with living costs. The amount you receive depends on your circumstances, including:
You can apply for Universal Credit online at GOV.UK. You will need to provide proof of identity, income, savings, and housing costs. The first payment is usually made five weeks after you apply (though you can request an advance if you cannot wait).
If you are already receiving legacy benefits, you do not need to switch to Universal Credit unless your circumstances change. The government is gradually moving everyone to Universal Credit, but the process is slow.
The Household Support Fund is a government grant given to local councils to provide emergency help with essentials like food, energy, and water bills. The fund is aimed at vulnerable households who are struggling to make ends meet.
Each council decides how to distribute the fund, so the help available varies by area. Some councils provide:
To access the Household Support Fund, contact your local council. Many councils have online application forms or phone lines. You will usually need to provide proof of income, benefits, and the reason you need help.
The Household Support Fund has been extended several times, but it is not permanent. Check your council's website for the latest information.
Most water companies offer social tariffs or support schemes for customers on low incomes or benefits. These can reduce your water bill by up to 50–90%, depending on the scheme.
Each water company runs its own scheme, so eligibility and discounts vary. Common schemes include:
To apply, contact your water company directly. You will need to provide proof of benefits or income. Most water companies have online application forms or phone lines.
If you have children, they may be eligible for free school meals if you receive certain benefits, including:
Free school meals are worth around £400–500 per child per year and can make a significant difference to household budgets.
To apply, contact your child's school or your local council. Most councils have online application forms. If your child is eligible, they will receive a free meal every school day.
If you are on a low income or receive certain benefits, you may be eligible for help with NHS costs, including:
You qualify automatically if you receive:
If you do not receive these benefits but have a low income, you can apply for an NHS Low Income Scheme (LIS) certificate, which provides partial or full help with health costs.
Apply online at GOV.UK or pick up a form (HC1) from your GP surgery or Jobcentre Plus.
If you are struggling with debt or cannot afford essential bills, free debt advice is available from:
These charities can help you negotiate with creditors, set up payment plans, and access emergency support. They can also check whether you are claiming all the benefits you are entitled to.
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