The Government has now published details of how the £400 discount on energy bills will work to support households this winter. Here’s everything you need to know about the plan: When will the payment start and who is entitled to the money? All households in England, Scotland and Wales will receive £400 off their energy bills from October. The support will be issued in six installments over six months to around 29 million households. Households will get £66 off their energy bills in October and November and £67 a month from December to March 2023. The non-refundable discount will be given to individuals every month regardless of whether consumers pay monthly, quarterly or have an associated payment card. There have been warnings that energy bills could top £3,300 a year this winter. Credit: PA How will people receive the money? Those with a residential electricity meter point who pay for their energy by standard credit, payment card and direct debit will receive an automatic discount on their bills. Traditional prepaid meter customers will receive discount Energy Bill vouchers in the first week of each month, issued via SMS, email or post. Customers should make arrangements to redeem them in person at top-up points such as a local Post Office or nearest PayPoint. Prepaid smart meter customers will see their energy bill discount credited directly to their prepaid smart meters in the first week of each delivery month. Will I need to return the money? No, it is not refundable. Want a quick and special update on the biggest news? Listen to our latest podcasts to find out what you need to know Do I have to give my bank details? No. It’s important to bear in mind that scammers may use this as an opportunity to strike – just as they did when financial support was announced early in the coronavirus pandemic and triggered a flurry of fake discount emails and messages purporting to come from official agencies. The government says no household should be asked for bank details at any point. Ministers are urging consumers to remain vigilant about potential scams and report them to the authorities. What if I move house? If your housing circumstances change during the six-month period – for example, if you move to a new house – the government has ensured that you will continue to receive the balance of the payments. Will I get the discount if my landlord pays my energy bills? Renters should still be able to take advantage of the rebate, even if it goes directly to a landlord who pays the energy bills for the property they live in, the government said. Its official advice states that students and other tenants rent properties on residential electricity contracts from landlords, where fixed energy costs are included in the rental charges. “In these circumstances, landlords who resell energy to their tenants should pass on rebate payments appropriately, in line with Ofgem’s tenant protection rules.” The official advice at this stage does not explicitly outline how the government or regulators will ensure the benefits are passed on to tenants. However, it has highlighted the rules that can protect tenants and ensure they benefit from this policy, and pointed to Ofgem’s guidance on how to ensure you are not charged more than you should be when buying electricity through a owner. What extra support is out there? The government said households most in need of financial support will be eligible for further help in addition to the energy bill discount. This includes:
A one-off payment of £650 towards the cost of living for around 8 million households on means-tested benefits. A one-off Pensioner Cost of Living Payment for more than 8 million pensioner households to be paid alongside the Winter Fuel Payment. This is worth £200-£300 and is paid to almost all households with at least one person of pensionable age. A one-off payment of £150 towards disability living costs for around six million people across the UK who receive certain disability benefits. A £500m increase and expansion of the Family Support Fund available to councils to help with essentials such as clothing and food. People experiencing difficulties with their energy bills should contact their supplier. Ofgem’s rules mean suppliers must offer payment plans that people can afford, and customers can ask for “emergency credit” if they’re on a pre-paid meter and can’t top up.
What did the government say about the plan? Business and Energy Minister Kwasi Kwarteng said: “People across the country are understandably concerned about the global rise in energy costs and the pressure this is putting on everyday bills. “While no government can control global gas prices, we have a responsibility to step in where we can and this significant £400 discount on energy bills we provide will go some way to helping millions of families in the colder months.” Chancellor Nadhim Zahawi said the discount was “part of £37 billion of help for households, including 8 million of the most vulnerable households receiving direct support of £1,200 to help with living costs”. The announcement comes after consumer champion Martin Lewis said Boris Johnson and Tory leadership candidates Liz Truss and Rishi Sunak needed to agree a package to help consumers. He said Boris Johnson’s “zombie government” was failing to tackle the crisis caused by rising energy bills and warned decisions on support could not be delayed until Johnson’s successor was in office. Mr Lewis of Money Saving Expert said households will start receiving notices of increased bills before the Tory leadership contest is over, with energy prices set to peak at £3,500 or more in October. You can find more information about the Energy Bill Support Scheme here.
