Every household with a domestic connection to the electricity grid in England, Scotland and Wales is eligible for the £200 reduction. The Northern Ireland Executive will be given funding to provide similar support to households in Northern Ireland.
Energy bills have gone up by around 50% for millions of households in Great Britain. The average home will now have to pay an extra £700 for their energy each year.
With bills expected to increase again later this year, the UK Government is offering households in Great Britain a £200 reduction on their electricity from October, as part of package of support to help people deal with rising energy bills.
The reduction is known as the Energy Bills Support Scheme. Here’s everything you need to know about how it will work.
Who will get the £200 discount?
How can I apply for the discount?
You don’t need to apply for the scheme. In most cases, electricity suppliers will automatically apply the discount to eligible households, which you’ll see on your energy bills from October.
The government has said that there may be several factors affecting how you receive the benefit, such as how you pay for your energy (eg by direct debit or pre-payment meter). It’s still working on some of the finer details – we’ll update this blog when we know more.
Is it a loan that I have to pay back?
Although the £200 reduction will be claimed back from future bill payers, there will be no interest to pay, no debt attached, and it won’t affect your credit rating.
The government has described it as a grant for households now, that will have to paid back through a levy on future electricity bills.
The costs of the reduction will be spread as widely as possible, and it’s expected to help more households manage expected higher energy bills from October. Future costs will be spread out over a few years, with future electricity bill payers expected to pay up to £40 a year over a period of five years through the levy.
Will I get the £200 reduction if I’m on a traditional pre-payment meter?
Yes. Previous schemes have used vouchers to help cover the costs for those on pre-payment meters. The government has said that all households who pay for their electricity in this way will get the reduction.
What happens if I change my payment method or tariff, or if my supplier goes bust?
According to the government, customers who switch payment methods or whose energy suppliers fail will not be penalised – so they should still get the £200 discount.
What happens if I move house or switch energy supplier?
All energy suppliers will apply the £200 reduction to bills from October. Costs will then be recovered through levy from 2023 over a period of five years. The scheme will be based on electricity meter points, so it won’t matter if you switch supplier.
The £200 doesn’t cover the whole increase, where can I get more help to pay my energy bills?
While the £200 reduction will help cover some of the increase, we know that many people will struggle to pay their energy bills given the steep price rises.
Our top tips could help you save up to £375 a year on your bills and there’s additional help available, wherever you are in the UK.
In Wales, please call the Nest scheme on 0808 808 2244 or visit the Welsh Government’s Nest website.
If you live in Scotland, please get in touch with Home Energy Scotland online or by calling 0808 808 2282.
Quick tips to save energy
Follow our 10 quick tips for straightforward ways to save energy, lower your bills and reduce your carbon footprint.
How to save money on your energy bills
Every home should be warm and safe, but for many households across the UK, the reality is very different.
Whether you want support to make energy saving changes or are interested in incentives for using renewable energy, there is financial assistance…