Around 28 million UK households will receive a £400 energy bill rebate this winter to help amid the worsening cost of living crisis.
The discount will be automatically applied to bills over the next few months, ending in March. The first £66 rebate was applied to most households' bills in October.
However, as reported by the Daily Record, those living in park homes or whose energy bills are included in their rent will get the financial support from the UK Government later in the year. If you are on an older-style pre-payment meter, you will be given vouchers that you can top up at any PayPoint.
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Many households may be unaware that when the rebate is applied, it may be used to clear arrears or be used as part of an agreed debt repayment plan. This was revealed in a written response from Business Minister Graham Stuart MP, when he was asked by Peter Gibson MP “whether energy suppliers are permitted to take funds paid through the Energy Bills Support Scheme to settle domestic energy debts in cases where there is a payment plan in place through the benefits system”.
Earlier in 2022, the Department for Work and Pensions made a temporary change to the Fuel Direct Scheme that protects benefits claimants from soaring energy bills. The scheme is in place until April 1, 2023.
As a result, energy companies are no longer able to request new deductions or increased payments from benefit payments to pay for ongoing fuel costs.
At the time, the DWP stated: “For claimants who pay for their ongoing fuel usage directly from their benefits, the amount they pay was not automatically increased if their bill went up in April 2022 and will not automatically increase when the price cap changes in October 2022.”
However, although this is still in place and it is up to each claimant whether they would like to increase the amount deducted from their benefits for fuel bills, the Business Minister's response indicates that companies are able to deduct money from the monthly discount to pay towards debt on an account.
Mr Stuart explained: “The objective of the Energy Bills Support Scheme (EBSS) is to help people with the cost of their energy bills over this winter. Where credit is applied to an account, it will contribute to arrears and any agreed debt repayment plan.
"As set out in its consultation response, the Government expects and encourages suppliers to make it their priority to work actively to move customers with large arrears balances onto repayment plans wherever possible.
“There are comprehensive rules in place to protect energy customers at risk of being in debt.”
How will I receive the monthly discount?
The £400 rebate will be delivered by energy supplies and applied to customers over a six-month period, beginning in October and ending in March. It will be applied monthly regardless of whether you pay for your bills monthly or quarterly.
This discount will be applied as follows:
- October - £66, if you have not received this yet contact your supplier
- November - £66
- December - £67
- January - £67
- February - £67
- March - £67
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