The Energy Bill Support Scheme was announced earlier this year as gas and electric prices soar.
While Liz Truss has announced a £2,500 cap on the price cap, this is still higher than what we are paying now. This new rate will come into force on October 1 - the average household is currently paying a rate of £1,971 a year.
Every household will receive £400 as part of the energy bill support scheme, but it isn't being handed out in one go - it is being issued in installments of around £60 a month until the end of December. This doesn't need to be paid back.
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Nearly every household in Scotland, England, and Wales are being given extra support in a bid to help take the sting out of the rising cost of living.
Only one per cent of homes aren't eligible, according to the UK Government, and further funding will be available to provide equivalent support of £400.
Those who aren't eligible will be households without a domestic electricity meter and a direct relationship with an electricity supplier, for example, those who live off the electric grid.
How to apply for it?
You do not need to apply for it. The discount will be applied to your monthly household electricity bill for six months starting in October 2022, even if you are on a prepayment meter or use a payment card.
Traditional prepayment meter users will get equivalent vouchers that you will need to redeem.
Breakdown of energy bill support scheme payments
Every household will get the following discounts monthly:
- £66 in October and November
- £67 in December, January, February and March
How you will get the discount if you pay by Direct Debit, prepayment or part of your rent.
If you pay via Direct Debit, the discount automatically in one of the following ways, as a reduction to your monthly direct debit amount or a refund to your bank account following the monthly direct debit collection.
If you use a smart prepayment meter, your discount will be credited directly to your smart prepayment meter in the first week of each month.
For those who pay by standard credit or prepayment card, it will be automatically applied as a credit to your account in the first week of each month as if you had topped it up.
Vouchers will be sent either by text, email, or post to those who use a traditional prepayment meter or they will be given credit automatically when they top up as usual. Vouchers can be redeemed at top-up points.
If your landlord has a domestic electricity contract with a licensed electricity supplier, and you pay for your electricity as part of your rent, your landlord may pass their discount on to you.
What do you do if you don't receive it?
The support scheme has not started yet, but if you have not received your first discount by the end of October 2022, you need to contact your electricity supplier.
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