The UK Government recently published updated details on how it plans to deliver the £400 energy bill discount to an estimated 29 million households across the country from this October. Included in the new guidance is crucial information for those using a prepayment meter, both smart and traditional.
Every household with a domestic electricity account will automatically qualify for the £400 non-repayable grant which will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023. The discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
Smart prepayment meter customers will see the discount credited directly to their smart prepayment meters in the first week of each month. However, traditional prepayment meter customers will be provided with redeemable vouchers or Special Action Messages (SAMs) in the first week of each month, issued via SMS text, email or post - customers will need to take action to redeem these at their usual top-up point.
The guidance states that traditional prepayment meter customers must ensure their supplier holds up-to-date contact details for them so they can receive their voucher and understand how to redeem it - and time is running out.
October starts this weekend which means those using traditional style prepayment meters must take actions before Friday, September 30.
Prepayment customers need to check their energy supplier has the correct details on file for their:
- Home address
- Mobile number
- Email address
It also said that the UK Government will work with suppliers and third parties on targeted communications and messaging for prepayment meter customers to ensure vouchers are used.
Despite the plan to provide monthly support to millions of customers, several energy experts have warned that households could burn through that money in just a few days.
Prime Minister Liz Truss recently announced the typical UK household will pay no more than £2,500 a year for energy for the next two years from October 1 as the UK Government responds to soaring gas and electricity prices.
The £2,500 Energy Price Guarantee will apply in Scotland, England and Wales from October 1, with the same level of support made available to Northern Ireland, which has a separate energy market.
However, it's worth remembering that this isn't the maximum you could pay for energy bills - use more and you'll pay more, similarly, use less and you'll pay less.
Who is eligible for the £400 Energy Bills Support Scheme?
All households with a domestic electricity connection in Great Britain are eligible for the £400 discount. There is no need to contact energy suppliers as it will be paid automatically - nobody needs to apply for this UK-wide support.
How will I receive the discount?
The £400 discount will be administered by suppliers and paid to customers over six months with payments starting from October 2022.
This discount will be applied as follows:
- October - £66
- November - £66
- December - £67
- January - £67
- February - £67
- March - £67
The BEIS said that the discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
If you do not receive the first instalment by the end of October, you should contact your energy supplier.
How each monthly payment will be made
Breakdown of the delivery process for each payment method:
- Direct debit customers - will receive the discount automatically as a reduction to the monthly direct debit amount collected, or as a refund to their bank account following direct debit collection during each month of delivery
- Standard credit customers and payment card customers - will see the discount automatically applied as a credit to standard credit customers’ accounts in the first week of each month of delivery, with the credit appearing as it would if the customer had made a payment
- Smart prepayment meter customers - will see the discount credited directly to their smart prepayment meters in the first week of each month of delivery
- Traditional prepayment meter customers - will be provided with redeemable vouchers or Special Action Messages (SAMs) in the first week of each month, issued via SMS text, email or post. Customers will need to take action to redeem these at their usual top-up point
Support for people without a direct electricity connection
The UK Government has also said that the £400 discount to households starting from October will also be available to the 1% of households who would not otherwise have received this support.
Additional funding will be made available so that £400 payments will be extended to include people such as park home residents and those tenants whose landlords pay for their energy via a commercial contract.
The UK Government said it is committed to ensuring such households receive the same support for their energy bills and will introduce legislation to make sure landlords pass the EBSS discount on to tenants who pay all-inclusive bills.
The Uk Government will also provide an additional payment of £100 to households across the UK who are not able to receive support for their heating costs through the Energy Price Guarantee.
This might be because they live in an area of the UK that is not served by the gas grid and is to compensate for the rising costs of alternative fuels such as heating oil.
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