Gas and electricity bills are continuing to rise with another hike coming in October followed by more increases in January and then again in April - by when the average home could be paying £5,500 a year according to forecasts. The Government announced a package of measures to help people pay the bills - including £400 for every householder in the country.
British Gas has now sent a message to customers explaining exactly how and when the money will arrive in your account. The process will be similar whichever energy provider you use.
They wrote: "We know times are really hard at the moment, with rises in living costs putting pressure on your budget. And some of our customers may find it difficult managing their energy bills."
They added: "The government has recently announced the new Energy Bills Support Scheme (EBSS), which will give households a £400 discount off their energy bills from October... The Energy Bills Support Scheme (EBSS) is part of the government’s wider support to help households with the cost of living. It’s open to all domestic households who use electricity."
Every household will get £400, paid over six months starting from October 2022. So you’ll get the following each month:
October 2022 £66
November 2022 £66
December 2022 £67
January 2023 £67
February 2023 £67
March 2023 £67
The BG message reads: "If your electricity bills are less than £66/£67 a month, you’ll still get the same amount. You can carry on using the discount to pay for your electricity after March 2023 (until all the £400 is used up).
"You don’t need to do anything – every household will automatically get the discount. You don’t need to repay the discount and it won’t affect your credit rating in any way.
"For Direct Debit customers, we’ll send the discount straight to your bank each month – like a refund – once your Direct Debit has gone through.
"For example: If your Direct Debit is £100 a month, you’d pay that as normal. Then a few days later, £67 will be paid in to your bank account. If your Direct Debit is less than £67 a month, say £50 for example, £50 will be refunded to your bank account and the remaining £17 will be applied as credit to your energy account.
"The discount will be applied automatically – you won’t be asked for your bank details at any time. Please beware of potential scams and report any unusual activity to report@phishing.gov.uk. You can find other examples of recent scams on our website."
Those with a domestic electricity meter point paying for their energy via standard credit, payment card and direct debit will receive an automatic deduction to their bills.
Traditional prepayment meter customers will be provided with energy bill discount vouchers in the first week of each month, issued via text message, email or post, using the customer’s registered contact details. These customers will need to take action to redeem these at their usual top-up point, such as their nearest local PayPoint or Post Office branch.
Smart prepayment meter customers will see the energy bill discount credited directly to their smart prepayment meters in the first week of each month of delivery.
Suppliers will be expected to report to Government the action they are taking to ensure the support has been passed on to consumers, including notifying customers in writing they have received the £400 energy bill discount and ensuring it is clearly shown on bills or statements.
Further Government support includes a £650 one-off cost-of-living payment for around eight million households on means-tested benefits;
a £300 one-off pensioner cost-of-living payment for over eight million pensioner households to be paid alongside the winter fuel payment; and a £150 one-off disability cost-of-living payment for around six million people across the UK who receive certain disability benefits.
People who are struggling with their energy bills should contact their supplier. Ofgem rules mean suppliers must offer payment plans people can afford and customers can ask for “emergency credit” if they use a prepay meter and cannot top up.
More information about this and the schemes, grants and benefits available is at www.ofgem.gov.uk/information-consumers/energy-advice-households/getting-help-if-you-cant-afford-your-energy-bills.
