Every Household To Receive Up To £350 To Help With Energy Bills
Chancellor Rishi Sunak has officially confirmed that households are entitled to up a sum of £350. This plan may in part be a response to increasing campaign pressure on the Government to help the population during the current cost of living emergency.
The Motivation Behind Energy Bill Aid
The money for energy bill assistance will come from state-supported loans of up to £9-billion. With up to £350 available to each household, the hope is that this strategy will assist in the face of the massive spike in energy prices. It’s also worth noting that regulatory body Ofgem plans to increase the price cap by 54% (representing approximately £700 per annum for the average household).
The Key Details Of The Latest Measures
You can find comprehensive factsheets on the energy bills rebate on the government’s website, where they explain the plan in detail. The main facts you need to know include the following:
October: A £200 rebate loan that gives you a discount no matter the specifics of your energy tariff.
April: A £150 rebate on English households’ council tax falling under bands A-D, as well as a sum of £565 going towards similar plans to assist homes in Scotland, Wales and Northern Ireland.
Flat-rate help: Everyone in council tax bands A-D is entitled to the same help, no matter how much you earn or how much energy you use. Consequently, those who use the least energy will benefit for the most.
What If You Don’t Qualify?
Councils will have an estimated £144-million fund to help people who don’t meet the conditions on the April rebate (e.g., because council tax doesn’t apply to them) but who are nevertheless on low incomes.
While none of the above will cover all you are charged in the wake of the energy price increases of up to £700 per year, it will be helpful if you’re currently having difficulty paying for your current energy expenses. In addition, the Chancellor has confirmed that you will not need to pay back the council tax rebate.
What You Can Expect From The £200 Rebate Loan Plan
While further details will emerge, the basic premise is that around all houses in England, Scotland, and Wales (i.e., around 28-million homes) will get a £200 energy bill discount. This includes homes that are electricity-only. The loan is predicted to arrive in installments, automatically for those who have a smarter meter and through a cheque if you are on prepay.
Regarding repayment, the £200 loan will be collected through household bills, probably in the form of higher standing charges. The plan is to recover this money in manageable installments of £40 over five years, when it is estimated that gas prices will have dropped.
What You Can Expect From The £150 Council Tax Rebate
If you’re in an English household that’s eligible (i.e., bands A-D), you should automatically be granted the rebate. However, different ways of paying council tax have consequences for how soon you can expect the £150. If you have a direct debit plan for your council tax, you’ll the money in a lump sum transferred using these bank details. Otherwise, you’ll need to give your local authority your information so you can receive the rebate.
If you’re outside of bands A-D, you may instead get something from the separate sum of £144-million given to councils. For example, if are in a student-only property or you have a low income but live in bands E-H, you could qualify. If you’re sure, the best idea is to check with your local authority once the scheme begins.
Planned Boost To The Warm Home Discount
Given the cost of living crisis, the Government also wants to pursue previously discussed improvements to the Warm Home Discount. If you’re eligible, your payment will rise to £150. And eligibility will expand to include a further 780,000 households. In total, the scheme will cover around 3-million homes will receive this help during the winter. You can also check to see what other help is available to reduce energy bills.