Thousands of households can apply for £500 cost of living loan – check if you’re eligible

THOUSANDS of households could be eligible for a £500 loan launched to help with the cost of living.

The interest-free loans are being given to residents in crisis or imminent crisis because of rising bills.

Ryedale District Council, Citizens Advice North Yorkshire and Community First Credit Union are teaming up to offer a Hardship Grant Fund for locals in need.

People can borrow as much as £500 interest-free, subject to availability and affordability.

The loans are being funded by a one-off revenue grant made by the council.

Residents can find out if they're eligible by visiting their local Citizens Advice or Community First office.

It's worth noting though that you will need to pay this back as it is a loan.

So make sure you've planned ahead for when that times comes too.

Councillor Phillip Spurr told the : "We believe the timing is right to be launching this important project with our partners, especially as this winter some of our citizens will want to take away some financial stresses and worry.

"We’ve ensured that the types of help are spread around the district fairly and proportionately, so that everyone can take advantage of the support and funding available.

"We urge anyone facing hardship to seek us out at Ryedale House or at any one of the outreach sites, and not let this opportunity for assistance slip by."

Carol Shreeve, the CEO of Citizens Advice North Yorkshire, said: "Our experienced advisers have been extremely busy during the cost-of-living crisis, and we have seen many people needing financial advice and support from us for the first time.

"We have also seen a huge increase in people not being able to heat their homes, pay their bills or put food on the table despite being part of a working household.

"We encourage people across the Ryedale district who are struggling financially to get in touch as soon as possible, to have a look at their options."

The scheme is similar to the Sound Pound loan launched in February by Mayor Andy Burnham in Manchester.

Any resident in Greater Manchester can apply for a loan between £200 and £1,000 from local credit unions.

Andy Burnham told : "Credit unions have a key role to play in the financial crisis that we all now face.

"I’m delighted to see them come together across Greater Manchester to provide a local and ethical alternative to the high-interest payday loan companies and loan sharks.

"Credit unions represent a positive, safe solution to short term credit pressures.

"Sound Pound is a fantastic initiative that shows Greater Manchester is doing things differently and coming together to support each other."

If you don't live in North Yorkshire or Greater Manchester, there are still a number of cost-of-living schemes available nationwide.

In November, Chancellor Jeremy Hunt allocated £842million to extend the Household Support Fund from April 2023 to March 2024.

The additional money will fund small payments by local councils to vulnerable households which need help meeting daily needs like food, clothing and utilities.

Many councils across the UK are offering their own Welfare Assistance Schemes for people on low incomes who have run into financial difficulty.

What help can I get with energy bills?

Households are still getting the £400 energy bill discount.

Th rebate is being paid in instalments, with the last one ending this month.

In most cases, the discount is applied automatically by energy firms so customers don't have to do anything.

Those on prepayment meters are having to redeem vouchers sent to them via email, text and post.

The £400 payment is split into six instalments which started being made in October.

Martin Lewis' MoneySavingExpert.com has unveiled a new calculator that can give you an estimation of what your bills might go up to from next month.

There is other help available.

The government has announced a second batch of cost of living payments that will be paid to millions of households.

This includes a £900 payment for millions on certain means-tested benefits.

Plus, a one-off £300 payment will be made to pensioners in Winter 2023/24.

It's not yet known who will qualify for these payments but you qualified for the last payment if:

• You were born on or before September 25, 1956
• You lived in the UK for at least one day during the week of 19 to 25 September 2022 in what is known as the "qualifying week"

Those with disabilities will get a £150 payment this summer too.

The exact eligibility criteria for getting the payment has not been revealed yet though.

On top of this, plenty of energy companies offer customers grants if they are struggling to make payments.

This includes British Gas, Scottish Power, Ovo, E.ON, EDF and Bulb Energy.

It's worth contacting your provider to see what help you might be able to get.

If you are on a prepayment meter and struggling to top up, you can also get fuel vouchers from your local council.

In most cases, you can then redeem them at PayPoints or a Post Office signed up to Payzone.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk