Households across the UK are set to get a £400 discount on their energy bills as part of plans by the UK Government to help offset the cost of living crisis.
Approximately 28 million households with a direct domestic electricity contract with their supplier will receive the rebate. It will be distributed via an expansion of the Energy Bills Support Scheme.
If you pay you energy provider directly for the electricity you use, either through normal payment methods or via pre-payment or a smart meter, then you will be eligible for the discount. The money will be deducted from your bill.
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The £400 will be issued directly to energy providers, who will then take the money off of your bill. This will occur over a six-month period beginning in October.
Direct debit and credit customers will get the cash credited to their account. Meanwhile, consumers who have pre-payment meters will either have the money applied to their meter or get it through a voucher.
However, according to National Energy Action (NEA), the rebate will not be enough to prevent more than 8 million households from falling into fuel poverty when the new energy price cap comes into effect in October.
NEA chief executive Adam Scorer stated: "Current financial support will be inadequate as much of that money will be spent before winter kicks in. Energy bills are already unaffordable for millions, and millions more are set to suffer.”
He added: “People will be forced into impossible situations - choosing between heating and eating, forced into spiralling debt, and putting their emotional and physical health at significant risk.”
As reported by the Daily Record, read on for everything you need to know about the £400 energy payment.
What is the Energy Bills Support Scheme?
The UK Government is distributing £37 billion worth of support between 2022 and 2023, included in which is the Energy Bills Support Scheme.
Via the scheme, electricity consumers throughout the UK will get a £400 rebate, which will be deducted from their bill. According to GOV.UK guidance, the money will not need to be paid back.
Who is eligible for the Energy Bills Support Scheme?
The rebate will automatically be distributed to every household with a domestic electricity connection. Since it is automatic, you do not need to get in touch with your energy provider.
When will more information on the delivery of the rebate be available?
The UK Government stated: “We are working on the specifics of delivery and are actively engaging with energy suppliers, consumer groups and Ofgem to ensure that delivering this grant is as simple and efficient as possible.
"A consultation on the Scheme concluded on May 23. Responses are being analysed and the government response will be published later in the summer."
I am on a non-smart pre-payment meter, will I get the £400?
Yes. As with previous schemes, those on pre-payment meters will get the discount in the form of vouchers.
If I live in a park home, will I get the £400? Or if I pay for energy in my rent, how do I make sure my landlord passes on the reduction?
The UK Government explained: “We recognise that there are certain situations where a third party will be responsible for the bill (and be named on it). In these situations, any charges should then be passed onto the end user, typically through all-inclusive rent (landlord or tenant) or ‘pitch’ charges (for example park homes).
"We are exploring this issue as we continue to develop the policy and we have gathered more evidence through the consultation."
What if I change payment method or tariff, or if my energy supplier goes bust?
The UK Government stated: "We are still designing the scheme but will ensure that customers who switch payment methods, or whose energy suppliers fail, will not be penalised."
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