Details of how north and north-east households will receive a £400 discount on energy bills have been released by the UK Government.
The Energy Bills Support Scheme (EBSS) will provide help to 29 million homes across Britain, with payments starting in October and running for six months.
Those with a domestic electricity meter and paying for their energy via standard credit, payment card or direct debit will receive an automatic deduction to their bills during the six-month period – totalling £400.
Prepayment meter customers will be given Energy Bill discount vouchers in the first week of each month, issued via SMS text, email or post, using the customer’s registered contact details.
These customers will need to take action to redeem the vouchers at their usual top-up point, such as their nearest local PayPoint or Post Office branch.
Beware of potential scams
No household should be asked for bank details at any point. Ministers are urging consumers to stay alert for potential scams and report any to the relevant authorities.
Business and Energy Secretary Kwasi Kwarteng said: “People across the country are understandably worried about the global rise in energy costs and the pressure this is placing on everyday bills.
“While no government can control global gas prices, we have a responsibility to step in where we can and this significant £400 discount on energy bills we’re providing will go some way to help millions of families over the colder months.”
The £400 discount forms part of the government’s £37 billion package for households, including eight million of the most vulnerable households receiving £1,200 of direct support.
Homes will see a discount of £66 applied to energy bills in October and November, rising to £67 each month from December to March 2023. The non-repayable discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
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Where a person’s housing circumstances change during the six-month period, such as those leaving or moving home, they will still benefit from the relevant portion of the total £400.
This also applies to students and other tenants renting properties with domestic electricity contracts from landlords where fixed energy costs are included in their rental charges.
Ofgem rules to protect tenants
In these circumstances, landlords who resell energy to their tenants should pass the discounted payments on, in line with Ofgem rules to protect tenants.
The government added: “As part of this package we are confirming 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 EBSS.
“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… can access this support will be made this autumn.
“Details set out today will ensure the scheme is delivered to as many domestic electricity customers as possible over the winter, regardless of which supplier they use or their choice of payment method.”
Aberdeen low income charity questions if grant will really work
Instant Neighbour, which helps those on low incomes in Aberdeen to set up home by providing access to low-cost reuse furniture, white goods, clothing and bric-a-brac, questioned how much impact the grant will have.
Evan Adamson, foodbank manager and community connector for the charity, said: “While the £400 will offer some welcome relief to those who are struggling, the fact the cap will likely go up significantly around October makes me wonder how much of a difference people will actually see.
“People are struggling with the current prices, so I just question if there will be a noticeable difference or whether the raised prices will, ultimately, just ‘cancel’ the subsidy and once the payments end people will be hit with a huge jump in prices next year.”
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