Who gets the £400 rebate and winter fuel payment?

The British government announced earlier this year that households will get £400 off their energy bills this winter as part of an effort to tackle skyrocketing bills as the cost of living crisis hits.

The policy was announced by former Chancellor Rishi Sunak alongside other measures, including a one-time payment of £650 to around eight million households on means-tested benefits; a one-off payment of £300 to more than eight million pensioner households to be paid alongside their winter fuel payment; and a one-off payment of £150 for around six million people across the UK who receive certain disability benefits.

As a Tory leadership candidate vying to succeed Boris Johnson this summer, Sunak promised more handouts but was ultimately defeated by Liz Truss, who moved quickly as prime minister to freeze Ofgem’s cap at £2,500 for two years, but has yet to promise more. direct payments to citizens.

Having stated his opposition to “alms” during a campaign interview with financial timeMrs Truss and her new chancellor Kwasi Kwarteng may yet be forced to do more, given Cornwall Insights analysts have warned that the scope of the energy crisis is such that Ofgem’s limit could have passed the £6,000 mark to April 2023. The government did not act.

A miserable winter is still on the cards for millions of households with inflation running at 9.9 percent, the highest in 40 years, causing the price of consumer goods and fuel to soar while wages stagnate. .

Here’s a look at how people will get the discount they were promised.

How will the £400 discount be paid?

Households will begin to receive money from their energy bills as of October, with the discount in six installments.

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

How will I get the discount?

It will be managed by energy providers. Those who have a domestic electricity meter point paying for their energy through standard credit, payment card and direct debit, will receive an automatic deduction on their bills.

Traditional prepaid meter customers will receive energy bill discount vouchers the first week of each month, issued by text message, email or post, using the customer’s registered contact details. These customers will need to take steps to redeem them at their usual top-up point, such as their local PayPoint or nearest post office branch.

Smart prepaid meter customers will see the energy bill discount credited directly to their smart prepaid meters in the first week of each delivery month.

Providers are expected to report to the government on the steps they are taking to ensure support has been passed on to consumers, including notifying customers in writing that they have received the £400 discount on their energy bill and make sure it is clearly displayed on bills or statements.

Do I need to give my bank details?

No. It is important to note that scammers may use this as an opportunity to attack, just as they did when financial support was announced early in the coronavirus pandemic and prompted a large number of fake refund emails and texts that purported to be from official bodies.

The government says that no household should be asked for bank details at any time. Ministers are urging consumers to be vigilant about possible scams and report them to the authorities.

Fraudulent text messages, for example, can be reported to 7726 and Ofcom has information on how to do this here.

Will I have to return the money?

No, it is not refundable.

People who are struggling with their energy bills should contact their provider. Ofgem’s rules mean providers must offer payment plans that people can afford and customers can apply for “emergency credit” if they use a prepaid meter and can’t top up.

You can find more information about this and the schemes, aids and benefits available here.

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