MILLIONS of households across England, Scotland and Wales are set to receive an energy bill discount this winter to help with the cost of living.
Over 29 million households are eligible for the discount worth £400.
The £400 energy bill discount will be split across six payments.
The discount was originally announced back in May by the former Chancellor Rishi Sunak, but the money won’t start to arrive until October.
It’s up to energy firms to administer and distribute the discount directly to their customers.
The discount will be automatic and will be made up of six instalments.
The country’s biggest energy supplier, British Gas, has now disclosed how exactly its customers who pay by direct debit will get the discount.
These customers will be expected to pay their bills as normal – they will receive the £400 discount as six direct payments into their bank account over a six month period.
In an email shared widely on social media, British Gas said: “For direct debit customers, we’ll send the discount straight to your bank each month – like a refund – once your Direct Debit has gone through.
“For example, if your direct debit is £100 a month, you’d pay as normal. Then a few days later, £67 will be paid in to your bank account.
“If your direct debit is less than £67 a month, say £50 for example, £50 will be refunded to your bank account and the remaining £17 will be applied to your energy account.”
EDF has also confirmed that customers who pay by direct debit will be refunded the discount after a successful bill payment is made.
However, Shell Energy customers will see the six discounts deducted from their bills before their direct debit is taken.
For example, if your monthly direct debit amount is £100, Shell Energy will deduct £66 in October and November, then £67 from December to March.
This means your direct debit amount would be £34 in October and November, then £33 for the remaining four months.
The Department for Business, Energy and Industrial Strategy has confirmed that payments will begin being dished out in October.
Energy suppliers have been instructed to pay households the discount in six instalments.
This means households will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023.
But with the energy price cap set to hit £5,300 – working out at roughly £442 a month over the next year – a single payment worth less than £70 a month will hardly touch the sides.
I have a standard electricity meter, how will I get the payment?
Direct debit customers will receive the energy bill discount in one of two ways.
You will either get an automatic deduction to your monthly direct debit, or you’ll get a refund into your bank account AFTER your direct debit has been taken each month – this is what British Gas and EDF are doing.
If you pay by credit (which means you get a bill through and then make a payment) the discount will be automatically applied as a credit on your account in the first week of each month.
I’m on a prepayment meter, how will I get the discount?
If you’re on a smart prepayment meter, the discount will be credited directly to your meter in the first week of each month of delivery – you won’t need to do anything.
If you’re on a traditional prepayment meter, you’ll be given a redeemable energy bill discount voucher or special action message (SAMs) in the first week of each month, issued via SMS text, email or post.
Customers will then need to redeem these at their usual top-up point.
I don’t have a direct relationship with an energy provider?
The government has confirmed today that further funding will be available to provide equivalent support of £400 for energy bills for the 1% of households who will not be reached through the energy bill support scheme.
This includes those who do not have a domestic electricity meter or a direct relationship with an energy supplier, such as park home residents.
An announcement with details on how and when these households across Great Britain can access this support will be made this Autumn.
Is there other energy bill help?
While you can’t do anything to escape rising energy prices – energy suppliers do offer support for those who are struggling to pay their bills.
For example, there are plenty of energy grants and schemes open to help you out if you’re struggling, like the British Gas hardship fund which can lend you up to £1,500 free cash towards bills.
Ask your supplier what’s on offer and how to apply, or check here:
- Bulb energy fund
- EDF’s energy customer support fund
- E.on’s energy fund
- Npower’s energy fund
- Ovo’s debt and energy assistance
- Scottish Power’s hardship fund
There’s also a one-off fuel voucher from your energy supplier if you’re on a prepayment metre.
If you don’t know who your supplier is, you can find out here.
Anyone getting the state pension should also get winter fuel payments worth £100s. Winter fuel payments are a tax-free payment that comes from the government each year and is worth between £100 and £300.
Councils are offering residents cash support through the Household Support Fund and Discretionary Fund scheme.