What are 'warm banks' which are opening across UK?

New Delhi: Over 3,700 ‘warm banks’ have opened their doors across the UK as soaring energy bills leave many with no other way to cope with the cost of living crisis. But what are these ‘warm banks’ and why are so many opening across UK?

Warm banks are spaces where people can go to heat up for free if they can’t afford to turn on the heating in their home. Charities, councils, community groups and businesses across the UK are all opening up warm banks this winter.

It comes after the UK raised its energy price cap by 80% on 1 October, putting the average UK energy bill up to £3,549 a year.

Meanwhile, the government is offering some money off bills, and is looking to accelerate domestic low-carbon energy production to try and bring down costs in the long term.

According to a report in CNN, cost of living has risen sharply since early 2021, according to data from the UK government. From October 2021 to October 2022, domestic gas and electricity prices increased by 129% and 66% respectively, the same research found.

A report by the Associated Press in August said, the cost-of-living crisis in Britain is about to get worse, with millions of people paying about 80% more a year on their household energy bills.

UK Prime Minister Rishi Sunak and Finance Minister Jeremy Hunt in November announced higher taxes and reduced public spending in an effort to heave the country out of a recession forecast to last just over a year and shrink its economy by just over 2%, according to the Office for Budget Responsibility.

The UK is the only G7 economy that remains smaller than it was before the coronavirus pandemic, according to the Office for National Statistics.

What is the Winter Fuel Payment scheme?

UK government has announced an Energy Bill Support Scheme worth £400 per eligible household, which will partially subsidize domestic energy bills from winter 2022 to 2023, as well as providing extra financial support to help pensioners pay their heating costs this winter under the Winter Fuel Payment scheme.

In the winter months, pensioners can get between £100 and £300 to help pay heating bills.

This winter, they will also receive an extra one-off £300 Pensioner Cost of Living Payment, which will be paid as an automatic top-up to the Winter Fuel Payment.

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