The UK Government has published new details on how it plans to deliver the £400 energy bill discount to an estimated 29 million households across the country from this October. Included in the new guidance is crucial information for those using a pre-payment meter, both smart and traditional.
Every household with a domestic electricity account will automatically qualify for the £400 non-repayable grant which 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. The discount will be provided on a monthly basis regardless of whether consumers pay monthly, quarterly or have an associated payment card.
Smart pre-payment meter customers will see the discount credited directly to their smart pre-payment meters in the first week of each month. Traditional pre-payment meter customers will be provided with redeemable vouchers or Special Action Messages (SAMs) in the first week of each month, issued via SMS text, email or post - customers will need to take action to redeem these at their usual top-up point.
However, the guidance states that traditional pre-payment meter customers must ensure their supplier holds up-to-date contact details for them so they can receive their voucher and understand how to redeem it.
This means people need to check their energy supplier has he correct:
- Home address
- Mobile number
- Email address
It also said that the UK Government will work with suppliers and third parties on targeted communications and messaging for pre-payment meter customers to ensure vouchers are used.
Despite the plan to provide monthly support to millions of customers, one energy company boss said households could burn through that money in just a few days after consultancy BFY announced it believes bills could hit £3,420 per year from October, before rising further in January.
The chairman of energy company Utilita said the worst is “potentially yet to come”.
Derek Lickorish told BBC Radio 4’s Today programme that special focus is needed on the poorest households.
In 2020 £50 of energy would have lasted 12 days, he said. Now customers could burn through that amount in three-and-a-half days.
He called for the introduction of a social tariff which discounts bills for those worst off.
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.”
To keep up to date with the cost of living crisis, join in the conversation on our Money Saving Scotland Facebook page here, or subscribe to our newsletter which goes out three times each week - sign up here.
READ NEXT
- Martin Lewis warns people on State Pension will lose one third of annual benefit to pay energy bills
British Gas Energy Trust can help people clear fuel bill debt of up to £750
Cheapest time to use your washing machine each day to keep energy bills down over summer
Full list of DWP Cost of Living Payments for people on low incomes and certain benefits
HMRC to give over one million Tax Credits claimants £326 cost of living payment this autumn
