Dominic Little on the impact of rising energy bills on families
We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info
The payment is going out to millions of households to help with the soaring cost of living. Most people will receive the money as a deduction from their energy bills over the six coldest months of the winter, starting from October 2022.
However, people who do not have a domestic electricity meter or a direct relationship with an electricity supplier will not receive the funds.
This will affect consumers who live in a park home, houseboat or off the grid.
Those whose energy bills are included in the rental agreement with their landlord will also not receive the support.
Other Government funding will be offered to provide equivalent support of £400 for those who fall in these categories.
READ MORE: State pension set to rise next year but 520,000 people will miss out
More details about how this scheme will work will be announced in the autumn.
The £400 discount will be administered by suppliers and paid to around 29 million customers.
Households will get a discount of £66 in October and November, which will go up to £67 from December to March.
The guidance on the Government website says: “Landlords who have a domestic electricity contract with a licensed electricity supplier and then resell the electricity to their tenants based on energy usage must comply with the maximum resale price rules.”
The maximum resale price for electricity is currently set as the same price as what the person who is reselling it paid originally.
The UK Government expects landlords to pass on the discount received to each tenant.
Landlords who charge an all inclusive rent, including a fixed energy bill, should also pass on the discount.
This is how many rented student houses are set up.
READ MORE: Britons in higher bracket can do 2 main things to reduce tax payments
Prepayment meter customers will be given the £400 discount through vouchers in the first week of each month.
These will be issued via text, email or post.
Customers will be contacted using their registered contact details.
People will need to redeem these at their usual top-up point, for example at a PayPoint or their local Post Office branch.
Those on smart prepayment meters will receive the £400 payment directly to their smart prepayment meters in the first week of each month.
Households will not need to provide bank details to process the payment.
Consumers have been urged to look out for scams as fraudsters will look to take advantage of the scheme to get people to hand over their details.
Nadhim Zahawi, the current Chancellor of the Exchequer, added: “We know that people are struggling with rising energy prices which is why we have taken action with support over the winter months to help ease the pressure on household budgets.
“This £400 off energy bills is part of our £37billion of help for households, including eight million of the most vulnerable households receiving £1,200 of direct support to help with the cost of living.
“We know there are tough times ahead and we will continue to do everything in our power to help people.”
Source: Read Full Article