Who qualifies for £400 energy bills rebate and when you will get it
Government 'can sort out' energy cost crisis says expert
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This payment will be made to all households that pay for their energy, regardless of their income. It is expected that around 29 million households in England, Scotland and Wales will benefit from the £400 energy grant.
Energy prices have soared over the last 12 months, leading to an unprecedented rise in energy bills for millions of households across the country.
Last month, Ofgem announced the energy price cap would rise to £3,549 on average for households based on typical use from October, however Liz Truss has since announced that household energy bills will be frozen for two years.
The ‘Energy Price Guarantee’ – also referred to as the October Price Freeze – came about in response to the continued rise in the price of energy, which was threatening to overwhelm many household budgets this winter.
Under the scheme, which starts from October 1, a typical household will pay an average of £2,500 a year on their energy bills, frozen until 2024.
In order to help with energy bills, the Government announced a £37billion support scheme to help Britons with spiralling living costs.
Households will be given a £400 energy bill discount to help soften the impact of rising bills this winter.
The discount will be applied to bills by suppliers over six months, as follows:
- October – £66
- November – £66
- December – £67
- January – £67
- February – £67
- March – £67
If someone pays their energy bills by direct debit, they’ll get the discount either as a reduction to direct debit amount collected, or, if their normal direct debit amount is collected, they’ll receive a refund to their bank account in the same month.
Smart prepayment meter customers will have the discount automatically applied to their account in the first week of each month.
Those with a traditional prepayment meter won’t have the discount applied automatically, but will instead be sent vouchers by text, email or post in the first week of each month.
These will then need to be redeemed at one’s usual top-up point.
There is no need to apply for the discount, but if someone has not received it by the end of October, they should make contact with their supplier.
British Gas or EDF customers who pay by direct debit will need to pay their direct debit as normal, but will receive six direct payments to their bank account (one a month) from October.
This essentially works like a refund. People will receive their ‘refund’ after their direct debit has gone through.
If someone pays by cash, card or cheque, the discount will be applied to their account in the first week of each month.
People will then only need to pay the remaining balance.
However, if someone is a Shell Energy direct debit customer, the discounts will be taken off their bill before their direct debit is taken.
Check with their supplier if they are unsure how the rebate will be paid to them, but they can be assured that their supplier will administer the rebate and they don’t need to worry about applying.
Sarah Coles, senior personal finance analyst at Hargreaves Lansdown, said: “The Government has offered a lifeline to millions of people struggling to keep their head above water.
“There’s no doubt that this will help keep many families afloat, especially those in the most desperate circumstances, some of whom will see state support that matches the rising cost of energy.”
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