Millions of couples could get a cash boost up to £250 – can you claim?

Lorraine: How to save on the cost of living

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When the energy price cap does go up in April, households could be paying £170 per month which is “a really significant rise”. Many people have been calling on the government to act and provide support for those who will be affected the most as these changes are “huge”.

On Lorraine this morning, financial journalist Claer Barrett offered suggestions as to how people can save money in the hard time.

She said: “If you are working from home under Plan B, you can claim the working from home discount.

“This is a tax credit, so you pay a bit less tax on your wage bill. You can apply online on, and that can save you up to £125 per year per person.

“It’s not per household so if there’s two of you working at home, it could be £250 going towards the bills.”

The work from home order has meant many workers have faced extra costs such as higher electricity, internet and energy bills.

While commuting costs may have fallen, HMRC recognises that overall most workers have faced higher bills as a result of working from home and so they are allowing people to claim tax relief for 2020 to 2021.

HMRC states that extra costs include heating, water bills, home contents insurance, business calls and a new internet connection.

People can check their eligibility and apply for this tax relief via HMRC’s dedicated online portal.

If the claim is approved, their tax code will be adjusted for the next tax year so they will pay less in tax to cover the increased bills.

Additionally there are other options for support available that she mentioned to help cut costs.

Ms Barrett continued: “Do register as a vulnerable customer as it does mean you will get extra help.

“Do apply for the Warm Home Discount if you can, let’s hope it will go up. Or a grant to help you pay if you really can’t afford it.”

To help with these skyrocketing costs, the Government has established the Warm Home Discount Scheme.

It provides eligible people with £140 off their electricity bill for the colder months of the year.

The money is not paid to individuals directly, and instead functions as a one-off discount between October and March.

Some people may be able to get the discount on their gas bill instead if their supplier provides them with both gas and electricity.

However, they will need to contact their supplier to confirm the details.

Ms Barrett also mentioned some energy saving tips which could prove very beneficial.

She explained that turning one’s thermostat down by one degree a year could have saved them £80 a year before so because bills have gone up so much now, this could now save people so much more.

She suggested people look on the Energy Trust Saving website for more useful tips.

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