Energy bills could reach £3,850 a year by Christmas – three times what households were paying at the start of 2022 – according to the latest expert estimates. The Government has now revealed further details of its already announced Energy Bill Help Scheme, which will see millions of households get a £400 discount on their energy bills this winter.
Who is eligible?
The Energy Bill Support Scheme applies to consumers in England, Scotland and Wales. All UK households with a domestic electricity connection are entitled to help.
The 1% of unconnected homes – including those without a direct connection to an energy supplier, such as park house dwellers – will receive equivalent financial help, with more details to be announced in the autumn.
The government said it was “working urgently” to ensure households in Northern Ireland received the equivalent of the support “as soon as possible”.
When will it be paid?
Millions of UK households will get a £400 discount on their energy bills this winter. Photo: Rosemary Calvert/Getty Images
The £400 discount will be paid in six monthly installments starting in October this year. In October and November, households will receive a £66 discount on their energy bills. This will rise to £67 per month from December to March 2023.
It will be paid on a monthly basis, regardless of when consumers normally pay their bills.
How will I get the money?
How households get the rebates depends on what kind of meter they have and how they pay their energy bills.
Direct Debit customers will automatically receive a deduction of the amount collected or as a refund to their bank account after paying the bill.
Standard credit customers, charge card customers and smart prepay customers will see the discount automatically applied as a credit during the first week of each month.
How households will receive the discounts depends on what kind of electricity meter they have. Photo: Stocksolutions/Alamy
Households with a traditional ‘non-smart’ prepaid meter will receive vouchers in the first week of each month, issued via text message, email or post. Customers will be able to redeem them at their usual recharge point.
Students and other tenants who rent properties where their energy bills are included in their rent should also receive the payment. “In these circumstances, landlords who resell energy to their tenants must pass on the reduced payments appropriately, in line with Ofgem’s tenant protection rules,” the guidance said.
What are the disadvantages?
The government has warned consumers to be on the lookout for potential fraudsters claiming to be involved in the process of paying their energy bills, and stresses that you will not be asked for bank details during the process.
If this is a paper voucher we would like to ensure that people do not overlook a post from their supplier Maureen Fields from National Energy Action
Charities and campaigners have raised concerns that more than 2 million “non-smart” pre-paid meter customers, who include some of the country’s poorest and most vulnerable households, may struggle to access maintenance.
Maureen Fields, from fuel poverty charity National Energy Action, said she feared some people using pre-paid meters could struggle to get the vouchers.
“A lot of people with pre-paid meters don’t have much interaction with the energy supplier; they just supplement as and when they have to,’ she told the BBC. “If it’s a paper voucher, we want to make sure people don’t overlook the mail from their supplier. This will not be another bill; it will be some level of support.”
What other support is available?
There is other government support available to help families struggling with rising living costs, including a one-off payment of £650 for around 8 million households on means-tested benefits.
Rules set by Ofgem mean providers must offer payment plans that people can afford. Photo: Yui Mok/Pennsylvania
Pensioners who claim the winter fuel payment will also get a one-off payment of £300 at the same time, and there is a living allowance payment of £150 for around 6 million people who claim certain disability payments.
Households struggling with their energy bills should contact their supplier as there may be other help available such as a hardship fund or payment plans to help pay off the debt.
Rules set by Ofgem, the energy regulator, mean suppliers must offer payment plans people can afford, and customers can ask for an “emergency credit” if they use a prepaid meter and can’t top up.
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