Martin Lewis disgusted by the 77% price hike on bills
Shocking forecasts for the October energy price cap (maximum rate) revealed this week that the rate for households could be £3,420 a year. Consultant’s BFY warned this could be close to £4,000 by January as gas prices continue to rise globally. The group said this could mean households will have to pay £500 in January alone. But the government is now stepping in by providing financial support to millions of households with a non-refundable discount as part of the Energy Bill Support Scheme.
The scheme is part of the government’s £37 million cost-of-living support package, which aims to support the most vulnerable households as prices continue to rise.
The £400 discount is managed by energy suppliers and will be paid to consumers in six months, with payments from October 2022.
For those with a household electricity meter who pay for their energy via standard credit, debit card and direct debit, they will automatically receive £400 in their bills during the period.
Customers with a traditional prepayment meter will receive energy bill coupons every week of the month via SMS, email or post, using the customer’s registered contact information. Customers should ensure that they redeem it at their usual top-up point.
Millions of households get £400 off energy bills (Image: Getty)
Energy price cap expected to exceed £3,000 (Image: Express)
This could be at their local PayPoint or post office, for example.
Energy Minister Greg Hands said: “Today we set out how the government will provide rebates this winter to help 29 million households with their energy bills.
“I encourage families across the country to take action on these plans and especially those customers with traditional prepayment meters who need to take action. of UK consumers now and in the future.”
Monthly discounts start from £66, which are deducted from energy bills in October and November.
This will then rise to £67 per month from December to March 2023.
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The non-refundable discount is part of the Energy Account Support Scheme. (Image: Express)
No matter how often a customer normally pays their bills (monthly, yearly or quarterly), the non-refundable discount is always provided on a monthly basis.
As a result, customers whose living situation changes in the course of the six months will still benefit from the discount.
The same applies to students and other tenants who rent housing with a household electricity contract from landlords.
And landlords who resell energy to their tenants must pass the rebate payments in accordance with Ofgem’s rules to enforce tenant rights.
Business and Energy Minister Kwasi Kwarteng said: “People across the country are understandably concerned about the global rise in energy costs and the strain it is putting on everyday bills.
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Mr. Kwarteng, the aid will “one way or another help millions of families” (Image: Getty)
“While no government can control global gas prices, we have a responsibility to intervene where we can and this significant £400 rebate on energy bills we are offering will be one way to help millions of families during the colder months. “
Chancellor Nadhim Zahawi, who recently replaced Rishi Sunak after his resignation, said: “We know people are struggling with rising energy prices and so we have taken action during the winter months with support to ease the pressure on household budgets.
“This £400 reduction on energy bills is part of our £37bn in aid for households, including eight million of the most vulnerable households who will receive £1,200 direct aid to help with living costs.
“We know difficult times are coming and we will continue to do everything in our power to help people.”
Greg Hands “encouraged families across the country to get involved in these plans” (Image: Getty)
While the government is offering other measures to help with the cost of living crisis, critics have criticized Westminster’s “slowness” to intervene.
Mike Foster, head of the Energy and Utilities Alliance, said: express.co.uk: “Government intervention in dealing with the price cap has been too slow, because as soon as the price cap is announced by Ofgem, suppliers immediately ramp up their direct debits.
“The majority of bill payers pay by direct debit, so we paid the higher fees before the price cap even came, because annual adjustments are made by the direct debit.
“We were warned that this would happen before there was any revenue for us as consumers.
“The government needs to think a little more carefully about getting things sorted when Ofgem announce their latest price cap change, which is in a few weeks.”