How to get your £400 energy bill discount
Claire McAteer
Netmums contributorAnd how to find out if you're eligible for the extra £650 grant for bills ...
This week the Chancellor revealed EVERY British household will get a £400 discount off energy bills, but how do you actually get the money? And will pre-payment meter households get it too? Here's everything you need to know...
Rishi Sunak announced a £15 billion package to help people struggling to cope with soaring energy bills, which are set to rise are set to jump by a further £830 on average in October.
To ease the squeeze, Rishi revealed new emergency measures including:
- £650 one-off payment for households who receive Universal Credit and other benefits
- £150 extra one-off disability payment
- £400 energy discount for EVERY household
Making the cost of living announcement in the Commons, Mr Sunak told MPs:
'We need to make sure that for those whom the struggle is too hard and for whom the risks are too great they are supported.'
But many Brits are unsure about how they will receive their £400, particularly the 4.3million people who are on pre-payment meters.
How does the £400 energy bill discount work?
The £400 energy bill discount will replace the £200 energy rebate due to be paid out in October.
Households were told that they would be paid £200 from October which they would have to pay back over five years, but this has now been scrapped.
Instead, every household will get a £400 grant that you DON'T have to pay back through higher bills.
The help will be paid via your energy supplier from October and payments will be split over the successive six months.
Will I get the £400 discount if I'm on a pre-payment meter?
Yes!
Gillian Cooper, Head of Energy Policy at Citizens Advice, told Netmums:
'If you’re on a smart prepayment meter, you should get October’s £400 energy rebate automatically credited to your meter.
'For those on old-style meters, you’ll be sent a number of vouchers in the post which you can use to top up the meter in your usual way.
'It’s much easier to top up and receive support like the rebate if you have a smart meter, so it’s worth asking your supplier if you can get one. They’re installed at no additional cost, but aren’t suitable for all properties yet.
'If you’re worried about not being able to top up your meter, you can get help from the Citizens Advice Consumer Service on 0808 223 1133.”
If you pay your energy bills by credit card or a direct debit, you'll see the £400 grant paid to your account in instalments.
Am I eligible for the extra £650 grant for bills?
The £650 one-off payment will be paid to more than eight million low-income households who receive Universal Credit, tax credits, pension credit and other means-tested benefits.
You will need to be on eligible benefits or have begun a successful claim as of May 25 2022 to get the first payment.
The Department for Work and Pensions will make the payment in two lump sums – in July and the autumn.
HMRC and the DWP will set out the eligibility date for the second payment in time.
The payment will be tax-free and won't count towards the benefit cap and it won't affect any existing payments.
How are you affected by the announcement? Chat all things money in our forum below...
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