Who will receive payment for the £400 energy bills?

12:44 PM July 29, 2022

Amid rising energy bills, millions of people across the UK are set to see £400 cut from their energy bills this winter.

Food and fuel prices have risen dramatically and some households are wondering how to pay rising bills.

The government has introduced the Energy Bills Support Scheme to help people meet the challenge of the cost of living crisis.

Here’s everything you need to know.

How will the £400 rebate be paid?

Households will start receiving money on their energy bills from October, with the reduction being made in six installments.

A reduction of £66 will be applied to energy bills in October and November, rising to £67 each month from December to March 2023.

Should I apply?

Energy providers will administer the rebate.

Those with a domestic electricity meter point paying for their energy by standard credit, debit card and direct debit will receive an automatic deduction from their bills.

Traditional prepayment meter customers will receive vouchers on their energy bill the first week of each month, issued by SMS, email or post, using the customer’s registered details.

These customers will need to arrange to redeem them at their usual top-up point, such as their nearest local PayPoint or post office.

Prepayment smart meter customers will see the rebate on their energy bill credited directly to their prepayment smart meters during the first week of each delivery month.

Suppliers will need to report to the government on the steps they are taking to ensure support has been passed on to consumers, including telling customers in writing that they have received the £400 energy bill rebate and ensuring that it is clearly indicated on invoices or statements.

Do I have to give my bank details?

No. It’s important to keep in mind that scammers can use this as an opportunity to strike – just as they did when financial support was announced at the start of the coronavirus pandemic.

This caused a slew of fake discount emails and texts claiming to be from official bodies.

The government has confirmed that no household should be asked to provide their bank details at any time.

Ministers urge consumers to remain alert to potential scams and report them to the authorities.

Will I need to refund the money?

The £400 is non-refundable and will not need to be refunded.

What other support is available?

Other government support includes a one-off £650 cost of living payment for around eight million households on means-tested benefits.

A one-off £300 pensioner cost of living payment for over eight million pensioner households to be paid alongside the winter fuel payment; and a one-off £150 disability cost of living payment for around six million people across the UK who receive certain disability benefits.

People struggling with their energy bills were urged to contact their supplier.

Ofgem’s rules mean providers must offer payment plans people can afford and customers can apply for “emergency credit” if they use a prepaid meter and cannot top up.

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Elaine R. Knight