The new "Energy Bills Support Scheme" is a payment being made to every household to counter the huge rise in energy bills.
Back in February, we were initially told this would be £200 and would be a loan rather than a grant, so we’d all have to repay the cash over five years.
Within weeks, it was clear that this wasn’t going to be nearly enough to counter the huge projected rise in energy bills.
So the payment was doubled to £400 and became a grant, which meant we didn’t have to repay it.
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The Government announced the payment will be made in October.
However, as with many of the other announcements about payments to help people through the cost of living crisis, the details, when they emerged, were a little more complicated.
Here’s my guide.
How will the Energy Bills Support Scheme work?
Every household in the UK will begin to receive payments this October.
But rather than getting the £400 in one lump sum (as we’d all assumed) the money will be divided in to six payments, made each month from October.
We will receive £66 in October and November, then £67 for the next four months.
According to the Government’s official guidance, here’s how you’ll get the payments:
- Direct debit customers will receive the discount automatically as a reduction to the monthly direct debit amount collected, or as a refund to the customer’s 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) from 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
What if the money doesn’t turn up?
The Mirror has been flooded with enquiries from readers about other Government support schemes where payments were late.
This included the £150 rebate paid via the council tax system and the Cost of Living payment that was made through the benefits system.
In many cases, people reported not getting the money, delays or problems when trying to chase up why the payments were missing.
I don’t like to be cynical, but given the previous problems – and the wide array of different payment methods for the Energy Bills Support Scheme – it seems likely that some people may experience some problems getting the cash.
Firstly, it’s vitally important that you make sure you energy firm has the correct contact details for you – including your phone number.
This is because some of the voucher payments may be made via text message.
Trying to second guess what might happen is tricky.
But given the Government is working with the energy firms to ensure everyone who is entitled to the payment receives it, the best way to chase the money if it’s missing is through the energy company.
This works on two levels. Not only will the energy firm be aware of how the payment is due to be made to you, it’s also a good way to flag up financial difficulties if you are struggling to pay.
Will everyone get the payment?
As with every scheme on this scale, there are a few quirks – and people who might not get the money.
If your landlord pays your energy, then the landlord will get the money.
There are a lot of rules that cover how landlords pass on energy costs to their tenants, however, they are rather complicated.
The Government has said that the discount should be passed on to tenants through the amount they pay in their bills.
If you are concerned about this, then check your contract to see what it says about energy costs.
This is a good idea anyway, given rocketing prices.
If you are in a dispute with a landlord about this (or anything else) you may want to speak to your local council to find out more about your rights and mediation services.
Every now and then I get a question that stumps me.
I was answering questions about the Energy Bills Support Scheme on a news programme recently when a caller told me she lived on a houseboat and wanted to know if she qualified for the scheme.
After many calls to find out, I got an answer.
People who don’t have a direct, domestic energy provider (like people living in houseboats or caravan parks) aren’t covered by the current scheme.
I’m pleased to see that the Government website has been updated to address this – and apparently this will be addressed soon.
What do I do if I still can’t afford my bill?
My recent column on energy bills and affordability answers lots of these questions.
However, the most important thing is to speak up and seek help now – even if you haven’t got in to arrears yet.
- Martyn James is a leading consumer rights campaigner, TV and radio broadcaster and journalist.
