Details of the £400 energy bill rebate for ALL UK households have finally been revealed – but there’s a catch
MILLIONS of households in England, Scotland and Wales will get a £400 cut on their energy bills from October.
More than 29 million households will be eligible for the reduction which will be automatically deducted from their energy bills – but not in the way expected.
The discount will be worth £400 and was previously announced in the former Chancellor’s Cost of Living Mini Budget in May.
Energy companies are responsible for administering and distributing the rebate directly to their customers.
The Department for Business, Energy and Industrial Strategy confirmed today that payments will begin to be distributed in October.
However, if you think you’ll get a one-time discount worth £400, think again.
Instead, energy suppliers were instructed to pay households the rebate in six installments.
This means households will see a reduction of £66 applied to their energy bills in October and November, rising to £67 each month from December to March 2023.
The non-refundable rebate will be granted on a monthly basis, whether consumers pay monthly, quarterly or have an associated payment card.
But with the energy price cap set to reach £3,500 – or around £291 a month over the next year – a single payment worth less than £70 a month will barely hit the sides.
Most households that have a standard household electricity meter and pay for their energy by standard credit, debit card and direct debit will receive the automatic deduction on their bills.
Those using a traditional prepayment meter will need to take steps to get the money.
They will have to use the discount vouchers sent by their energy supplier to their usual charging point.
You will not be asked at any time to provide your bank details.
Ministers urge consumers to remain alert to potential scams and report them to the relevant authorities where they are suspected.
Energy Minister Greg Hands said: “Today we explained how the government will provide rebates to help 29 million households pay their energy bills this winter.
“I encourage families across the country to engage with these plans and especially customers on traditional prepaid meters who need to take action.”
I have a standard electricity meter, how will I get payment?
Direct debit customers will receive the discount on the energy bill in two ways.
You will either get an automatic deduction from your monthly direct debit or a refund to your bank account AFTER your direct debit has been made each month.
If you pay by credit (meaning you receive an invoice and then make a payment), the discount will automatically be applied as a credit to your account the first week of each month.
I am on a prepayment meter, how will I benefit from the reduction?
If you use a prepaid smart meter, the rebate will be credited directly to your meter the first week of each delivery month – you don’t have to do anything.
If you are on a traditional prepayment meter, you will receive a redeemable energy bill discount voucher or Special Action Message (SAM) the first week of each month, delivered by SMS, email or post.
Customers will then have to exchange them at their usual charging point.
I don’t have a direct relationship with an energy supplier?
The Government today confirmed that additional funding will be available to provide assistance equivalent to £400 towards the energy bills of the 1% of households who will not be affected by the energy bill relief scheme.
This includes those who do not have a home electricity meter or who do not have a direct relationship with an energy supplier, such as residents of park houses.
An announcement with details of how and when these households across Britain can access this support will be made this autumn.