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In response to the escalating cost of living crisis, the UK government has unveiled a comprehensive package of measures aimed at providing financial support to households and businesses. The initiatives, outlined in detail below, encompass a wide range of assistance mechanisms, including energy bill discounts, council tax rebates, and fuel duty reductions.

Energy Bill Support

Recognizing the significant impact of soaring energy prices, the government has implemented a series of measures to alleviate the burden on households and businesses:

  • Energy Price Cap: The government has implemented an energy price cap, limiting the maximum amount that suppliers can charge customers for their gas and electricity. This cap will be reviewed every six months to ensure it remains fair and effective.
  • £400 Energy Bills Discount: All households in the UK will receive a £400 discount on their energy bills, spread over six monthly installments from October 2022.
  • £650 Cost of Living Payment: Low-income households will receive an additional £650 cost of living payment to help with the rising cost of energy and other essential expenses.
  • £150 Warm Home Discount: Vulnerable households will receive a £150 Warm Home Discount to assist with the cost of heating their homes during the winter months.

Council Tax Rebate

To provide further financial support, the government is offering a £150 council tax rebate to households in council tax bands A to D. This rebate will be paid directly to energy suppliers, who will then credit the amount to customers' accounts.

Fuel Duty Reduction

In an effort to reduce the cost of transportation, the government has temporarily reduced the fuel duty rate by 5 pence per liter. This reduction will remain in place until March 2023, providing motorists with some relief at the pump.

Additional Support for Low-Income Households

The government recognizes that low-income households face disproportionate challenges in coping with the rising cost of living. In addition to the measures outlined above, the government has introduced targeted support for those most in need:

  • Household Support Fund: The government has allocated £500 million to local authorities through the Household Support Fund. This fund will provide emergency assistance to households struggling to pay for essential living costs.
  • Universal Credit Uplift: A temporary £20 uplift to Universal Credit payments, implemented during the COVID-19 pandemic, has been extended until October 2022. This will provide additional support to low-income working families.

Support for Businesses

In addition to assisting households, the government has also announced measures to support businesses impacted by the cost of living crisis:

  • Fuel Duty Rebate: Businesses that use diesel or biodiesel will be eligible for a fuel duty rebate of up to £1,300 per vehicle.
  • Business Rates Relief: Eligible businesses in the hospitality, retail, and leisure sectors will receive a 50% reduction in business rates for the 2022/23 financial year.


The UK government's latest package of measures represents a significant step towards mitigating the impact of the rising cost of living on households and businesses across the country. The initiatives encompass a wide range of support mechanisms, including energy bill discounts, council tax rebates, fuel duty reductions, and targeted assistance for low-income households. The government will continue to monitor the situation and take further action as necessary to ensure that those most in need receive the support they require.

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