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More than £100m of vouchers in the government’s Energy Bills Support Scheme have still not been claimed, with only a few days to go before the deadline.

Households on prepayment meters have been told to redeem their vouchers by 30 June – in a final push to help those yet to benefit from a discount on their bills during the spiralling cost of living crisis.

Here’s everything you need to know before Friday’s deadline.

What is the Energy Bills Support Scheme?

The Energy Bills Support Scheme was put in place to give households a £400 discount on their energy bills during the winter between 1 October 2022 and 31 March 2023 in England, Scotland and Wales.

In Northern Ireland, people could get £600 under the Northern Ireland Energy Bills Support Scheme.

The discount was sent automatically to those paying by direct debit, with six instalments of £66 or £67 sent each month over the winter.

People on traditional prepayment meters were due to receive vouchers by text, email or post which they could redeem when they top up at their usual point.

However, many on prepayment meters, often the most vulnerable, have not taken advantage of the government discount.

How do I know if I am eligible?

“All households with a domestic electricity connection in England, Scotland and Wales were eligible for the discount,” the government website has said.

And you will still get the discount if:

• You have changed your payment method or tariff

• If you have switched electricity suppliers

• If you have moved to a new address

• If your supplier goes bust

• If you’re currently in arrears on your electricity bill payments

How can I claim my vouchers?

According to the government website, if you have a traditional prepayment meter, you automatically got a discount each month either as a redeemable voucher sent by text, email or post, or an automatic credit when you topped up at your usual top-up point.

Remember, vouchers expire after 90 days, but you can ask your electricity supplier to reissue the vouchers before the deadline.

Once you get your voucher, you’ll need to take it to the Post Office or a PayPoint shop to add it to your gas or electricity top-up key or card.

How did other people get their discounts?

If you have a smart prepayment meter, your discount was credited directly to your smart meter in the first week of each month, according to the government website.

If you pay by credit or debit card, your discount was automatically applied to your account.

If you make your payments by direct debit, you got the discount automatically either as a reduction to your monthly bill or a refund was made to your account.

Do I need proof of ID to redeem the vouchers?

Yes, but this depends on your energy supplier, so be sure to check the company’s website before going to claim your vouchers.

Proof of ID or address includes:

• Bank statement

• UK driving licence

• Household bill

• UK passport

• Council tax bill

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With the deadline closing in, people are being urged to redeem their vouchers.

So far, London has had the lowest redemption rate for a month.

In the city, there were more than 650,000 vouchers unclaimed at the end of March when the scheme was supposed to have ended.

The list of areas with the percentage of vouchers not redeemed are:

Cities of London and Westminster – 44%

Hampstead and Kilburn – 44%

Ealing Central and Acton – 41%

Brent Central – 39%

Finchley and Golders Green – 39%

Glasgow Central – 38%

Hendon – 36%

Westminster North – 35%

Chelsea and Fulham – 35%

Hornsey and Wood Green – 35%

Brighton Pavilion – 34%

Holborn and St Pancras – 32%

Greenwich and Woolwich – 31%

Ealing North – 31%

Ilford North – 30%

‘The support that keeps their lights on’

Fuel poverty charity National Energy Action (NEA) said people should take advantage of the vouchers and redeem them before the deadline. Those with unclaimed vouchers are urged to contact their electricity supplier as soon as possible.

NEA chief executive Adam Scorer said the NEA “knows how crucial the government’s Energy Bills Support Scheme has been. The £400, paid in six instalments of £66 or £67, has helped many people this winter.

“But prepayment customers – often some of the most vulnerable – were paid in vouchers and millions remains unclaimed. Some customers didn’t receive them, others struggled to redeem them.”

Mr Scorer said the discount “may be the support that keeps their lights on, their oven cooking, their hot showers running, through the summer. It’s vital money at a time when it’s never been needed more.”

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Inflation jumps to 3.6% on fuel and food price pressures

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Inflation jumps to 3.6% on fuel and food price pressures

The rate of inflation has risen by more than expected on the back of fuel and food price pressures, according to official figures which have prompted accusations of an own goal for the chancellor.

The Office for National Statistics (ONS) reported a 3.6% level for the 12 months to June – a pace not seen since January last year.

That was up from the 3.4% rate seen the previous month. Economists had expected no change.

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ONS acting chief economist Richard Heys said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.

“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”

A key driver of food inflation has been meat prices.

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Beef, in particular, has shot up in cost – by more than 30% over the past year – according to Association of Independent Meat Suppliers data reported by FarmingUK.

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Beef has seen the biggest percentage increase in meat costs. Pic: PA

High global demand alongside raised production costs have been blamed.

But Kris Hamer, director of insight at the British Retail Consortium, said: “While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.

“Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising.”

It marked a clear claim that tax rises imposed on employers by Rachel Reeves from April have helped stoke inflation.

Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: “The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.”

Chancellor Rachel Reeves said of the data: “I know working people are still struggling with the cost of living. That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.

“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”

The wider ONS data is a timely reminder of the squeeze on living standards still being felt by many households – largely since the end of the COVID pandemic and subsequent energy-driven cost of living crisis.

Record rental costs alongside elevated borrowing costs – the latter a result of the Bank of England’s action to help keep a lid on inflation – have added to the burden on family budgets.

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Is the cost of living crisis over?

Most are still reeling from the effects of high energy bills.

The cost of gas and electricity is among the reasons why the pace of price growth for many goods and services remains above a level the Bank would ideally like to see.

Added to that is the toll placed on finances by wider hikes to bills. April saw those for water, council tax and many other essentials rise at an inflation-busting rate.

The inflation figures, along with employment data due tomorrow, are the last before the Bank of England is due to make its next interest rate decision on 7 August.

The vast majority of financial market participants, and many economists, expect a quarter point cut to 4%.

That forecast is largely based on the fact that wider economic data is suggesting a slowdown in both economic growth and the labour market – twin headaches for a chancellor gunning for growth and juggling hugely squeezed public finances.

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Professor Joe Nellis, economic adviser at the advisory firm MHA, said of the ONS data: “This is a reminder that while price rises have slowed from the highs of 2021-23, the battle against inflation is far from over and there is no return to normality yet – especially for many households who are still feeling the squeeze on essentials such as food, energy, and services.

“However, while the Bank of England is expected to take a cautious approach to interest rate policy, we still expect a cut in interest rates when the Monetary Policy Committee next votes on 7th August.

“Despite inflation at 3.6% remaining above the official 2% target, a softening labour market – slowing wage growth and decreasing job vacancies – means that the MPC will predict inflation to begin falling as we head into the new year, justifying the lowering of interest rates.”

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Chancellor Rachel Reeves considering ‘changes’ to ISAs – and says there’s too much focus on ‘risk’ in investing

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Chancellor Rachel Reeves considering 'changes' to ISAs - and says there's too much focus on 'risk' in investing

The chancellor has confirmed she is considering “changes” to ISAs – and said there has been too much focus on “risk” in members of the public investing.

In her second annual Mansion House speech to the financial sector, Rachel Reeves said she recognised “differing views” over the popular tax-free savings accounts, in which savers can currently put up to £20,000 a year.

She was reportedly considering reducing the threshold to as low as £4,000 a year, in a bid to encourage people to put money into stocks and shares instead and boost the economy.

However the chancellor has shelved any immediate planned changes after fierce backlash from building societies and consumer groups.

In her speech to key industry figures on Tuesday evening, Ms Reeves said: “I will continue to consider further changes to ISAs, engaging widely over the coming months and recognising that despite the differing views on the right approach, we are united in wanting better outcomes for both savers and for the UK economy.”

She added: “For too long, we have presented investment in too negative a light, quick to warn people of the risks, without giving proper weight to the benefits.”

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Rachel Reeves’s fiscal dilemma

Ms Reeves’s speech, the first major one since the welfare bill climbdown two weeks ago, appeared to encourage regulators to focus less on risks and more on the benefits of investing in things like the stock market and government bonds (loans issued by states to raise funds with an interest rate paid in return).

She welcomed action by the financial regulator to review risk warning rules and the campaign to promote retail investment, which the Financial Conduct Authority (FCA) is launching next year.

“Our tangled system of financial advice and guidance has meant that people cannot get the right support to make decisions for themselves”, Ms Reeves told the event in London.

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Last year, Ms Reeves said post-financial crash regulation had “gone too far” and set a course for cutting red tape.

On Tuesday, she said she would announce a package of City changes, including a new competitive framework for a part of the insurance industry and a regulatory regime for asset management.

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Reeves is ‘totally’ up for the job

In response to Ms Reeves’s address, shadow chancellor Sir Mel Stride said: “Rachel Reeves should have used her speech this evening to rule out massive tax rises on businesses and working people. The fact that she didn’t should send a shiver down the spine of taxpayers across the country.”

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The governor of the Bank of England, Andrew Bailey, also spoke at the Mansion House event and said Donald Trump’s taxes on US imports would slow the economy and trade imbalances should be addressed.

“Increasing tariffs creates the risk of fragmenting the world economy, and thereby reducing activity”, he said.

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New electric car grants of up to £3,750 aims to drive sales

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New electric car grants of up to £3,750 aims to drive sales

The taxpayer is to help drive the switch to non-polluting vehicles through a new grant of up to £3,750, but some of the cheapest electric cars are to be excluded.

The Department for Transport (DfT) said a £650m fund was being made available for the Electric Car Grant, which is due to get into gear from Wednesday.

Users of the scheme – the first of its kind since the last Conservative government scrapped grants for new electric vehicles three years ago – will be able to secure discounts based on the “sustainability” of the car.

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It will apply only to vehicles with a list price of £37,000 or below – with only the greenest models eligible for the highest grant.

Buyers of so-called ‘Band two’ vehicles can receive up to £1,500.

The qualification criteria includes a recognition of a vehicle’s carbon footprint from manufacture to showroom so UK-produced EVs, costing less than £37,000, would be expected to qualify for the top grant.

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It is understood that Chinese-produced EVs – often the cheapest in the market – would not.

BYD electric vehicles before being loaded onto a ship in Lianyungang, China. Pic: Reuters
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BYD electric vehicles before being loaded onto a ship in Lianyungang, China. Pic: Reuters

DfT said 33 new electric car models were currently available for less than £30,000.

The government has been encouraged to act as sales of new electric vehicles are struggling to keep pace with what is needed to meet emissions targets.

Challenges include the high prices for electric cars when compared to conventionally powered models.

At the same time, consumer and business budgets have been squeezed since the 2022 cost of living crisis – and households and businesses are continuing to feel the pinch to this day.

Another key concern is the state of the public charging network.

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The Chinese electric car rivalling Tesla

Transport Secretary Heidi Alexander said: “This EV grant will not only allow people to keep more of their hard-earned money – it’ll help our automotive sector seize one of the biggest opportunities of the 21st century.

“And with over 82,000 public charge points now available across the UK, we’ve built the infrastructure families need to make the switch with confidence.”

The Government has pledged to ban the sale of new fully petrol or diesel cars and vans from 2030 but has allowed non-plug in hybrid sales to continue until 2025.

It is hoped the grants will enable the industry to meet and even exceed the current zero emission vehicle mandate.

Under the rules, at least 28% of new cars sold by each manufacturer in the UK this year must be zero emission.

The figure stood at 21.6% during the first half of the year.

The car industry has long complained that it has had to foot a multi-billion pound bill to woo buyers for electric cars through “unsustainable” discounting.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the grants sent a “clear signal to consumers that now is the time to switch”.

He went on: “Rapid deployment and availability of this grant over the next few years will help provide the momentum that is essential to take the EV market from just one in four today, to four in five by the end of the decade.”

But the Conservatives questioned whether taxpayers should be footing the bill.

Shadow transport secretary Gareth Bacon said: “Last week, the Office for Budget Responsibility made clear the transition to EVs comes at a cost, and this scheme only adds to it.

“Make no mistake: more tax rises are coming in the autumn.”

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