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£400 Energy Bills Support Scheme will see the money spread over 6 months starting with a £66 credit in October




Households are being given £400 this winter to help meet the costs of sky-high energy bills.

But how is the money from the government's Energy Bills Support Scheme being sent to homes, when will it arrive and what should you do if you've not got yours yet?

Every household in England, Scotland and Wales will get £400 worth of help this winter
Every household in England, Scotland and Wales will get £400 worth of help this winter

What is the Energy Bills Support Scheme?

From this month every household in England, Scotland and Wales is to be given money-off their gas and electricity bill.

A policy initially announced as a £200 rebate that would need repaying over a number of years, the government earlier this year rethought its plans and settled on giving every home with a domestic energy contract double that amount and letting them keep it.

The scheme, say ministers, will help around 29 million households across Great Britain between October and March.

Energy bills increased on October 1 with a further change to the price cap. Photo: File image.
Energy bills increased on October 1 with a further change to the price cap. Photo: File image.

Do I need to apply?

Households do not need to apply for the cash. Energy suppliers will be responsible for passing on the discount to each of their customers with a domestic electricity connection.

Everyone with domestic gas and electric supplies will be entitled to the extra £400 of help and this applies to both those paying by direct debit or those homes using a pre-payment meter. But how that money is paid-out may differ depending on your provider, tariff and payment arrangements.

The £400 will be paid out in six monthly instalments from October until March
The £400 will be paid out in six monthly instalments from October until March

How and when will I receive the money?

The £400 discount isn't coming as a lump sum. Instead it is going to be paid to households over the next six months to try and give everyone steady and gradual financial support over the more-costly winter months.

Customers will be given £66 in October and November - rising to £67 each month from December through to March 2023. The money will be sent out on a monthly basis regardless of whether someone pays their energy bills monthly, quarterly or with an associated payment card but by the end of March every home should have received in total £400.

While there may be some changes in payment methods depending on your supplier, direct Debit customers will most likely receive the discount automatically as a reduction to the monthly direct debit amount collected, or as a refund to the customer’s bank account following the collection of the direct debit.

Standard credit customers and payment card customers will see the discount automatically applied as a credit on their energy bill statement - with the credit appearing as it would if the customer had made a payment.

Smart prepayment meter customers will see the discount credited directly to their meters in the first week of each month of delivery of the money while those with traditional prepayment meters will be sent redeemable vouchers or Special Action Messages (SAMs) in the first week of each month. These will be issued via a text, email or through the post and can be redeemed at the usual top-up points you would use to add credit to your meter ordinarily.

The money may appear as a credit on a statement or as a refund to your account when you pay your direct debit. Image: Stock photo.
The money may appear as a credit on a statement or as a refund to your account when you pay your direct debit. Image: Stock photo.

If I pay for energy in my rent do I get the discount?

Landlords who have a domestic electricity contract with a licensed electricity supplier and then resell the electricity to tenants based on energy usage must comply with the maximum resale price rules - which for electricity is currently set as the same price as that paid by the person reselling it. Under these circumstances, says the government, it expects landlords to pass on the discount.

Those who charge ‘all inclusive’ rent, such as is the case for many student houses, where a fixed price for energy costs is included in rental payments, should also be passing on the discounted payments say ministers.

What happens if I switch energy suppliers?

Electricity suppliers will apply the discount to bills every month from October round to March and so it won't matter if you choose to switch suppliers during that time.

Changing tariffs or payment methods also won't make a difference to the money you receive as six pre-set individual monthly payments are being made. So should your circumstances change, you should be eligible to pick up the discount come the next month with your new company if you need to.

Charities are warning that such sky-high costs are going to push more people into debt. Image: iStock.
Charities are warning that such sky-high costs are going to push more people into debt. Image: iStock.

What about customers in arrears or in debt?

There has been much talk among charities and poverty campaigners about how much the high energy prices will push people into debt and arrears this year.

As all households are entitled to the £400 in help, it won't prevent you receiving any of the six payments if you owe money to your supplier already. But if you're sent this money as a credit on your bill, rather than into your current account, it will reduce the amount by which you're energy is in arrears rather than giving you extra cash in your pocket to use.

The government says it expects - and is encouraging suppliers - to make it their priority as we go towards winter to actively work with customers with large arrears balances. This ordinarily means moving them onto repayment plans to help manage the debt that's being accumulated while ensuring that they have continued access to gas and electricity.

Households waiting for their money should only contact their supplier if it's not arrived by the end of October. Image: iStock.
Households waiting for their money should only contact their supplier if it's not arrived by the end of October. Image: iStock.

What if I've not received my money?

Households are being reminded by energy suppliers that payments will come automatically - particularly in light of increasing numbers of fake texts and emails pretending to offer people access to their £400 rebate in exchange for personal details.

No household waiting for their money needs to do anything other than look out for the credit to appear on a statement or, if you pay in advance, through vouchers being sent to you.

Customers should only contact their energy supplier directly for further help if the first instalment of money has not come through by the end of October.



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