Nearly two million households will be starting to receive an extra £200 towards their heating bills from today.
Families who don't use mains gas will be getting the Alternative Fuel Payment (AFP), and should start to see their money in the next few weeks. Most will get the £200 automatically as a credit on their electricity bill throughout February and won't have to do anything if they receive electricity to their homes. The money is in addition to the £400 Energy Bill Support Scheme (EBSS) paid through their electricity supplier.
However the Government has warned that some households will need to apply for the support later this month and has warned people to be on their guard against scammers trying to con them into giving their details. Families who will need to apply include the small minority of customers with no direct energy supplier, such as those living in park homes or on static houseboats. These households will need to use an online portal that will launch later this month, as there is no central register of people who don't use mains gas to heat their homes.
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The AFP was doubled to £200 in the Autumn Statement to help people who use alternative energy sources such as heating oil, biomass and liquefied petroleum gas (LPG) to warm their homes amid the cost of living crisis. The Department for Business, Energy and Industrial Strategy (BEIS) has said the automatic payments are expected to be completed within the month - although this will depend on customers’ suppliers and how they pay their bills.
An application portal on gov.uk will open later in February, alongside further information on which households will need to apply. Those who are on the gas grid but don't have a gas connection and are using alternative fuels as their main heating source will also probably need to take this route.
Customers who need to apply should take no action until the online portal launches later in February. The application process will require customers to enter their household bank details onto the gov.uk portal. A Government spokesperson said: "Customers will not be asked for details by any individual or organisation prior to this or outside of the portal, and any such contact is likely to be a scam. If you require additional help when applying for your AFP support, you may wish to seek assistance from a family member or trusted friend."
From Wednesday, energy suppliers will also be able to start making payments to businesses and both public and voluntary sector organisations that use alternative fuels to heat their buildings. A credit of £150 will be provided to eligible customers across the UK through the Non-Domestic Alternative Fuel Payment scheme (ND-AFP). Suppliers will deliver this support up to March 10, although most customers are expected to receive it later this month. This will also be paid automatically, so there's no need to contact your supplier if you are eligible.
Minister for Energy and Climate Graham Stuart said: “Our main energy bill support schemes have seen millions of homes and businesses across the country get much needed help to cover costs, with figures today showing nearly £3 billion in Government support has been paid out to business to date. Now we’re getting support to those remaining few that are off the gas grid and most difficult to reach.”
Around five per cent of UK homes - or 1.5 million - are heated by oil, the price of which has soared from 58p per litre on October 1 2021 to around 94p per litre today. In March 2022, the price hiked to £1.59 per litre before tailing back off to today's prices. Nearly 200,000 UK families heat their home using LPG.
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