Money Saving Expert Martin Lewis has called on the Chancellor Rishi Sunak to "urgently rethink his energy bills £200 discount and clawback scheme”.
Research commissioned by his MoneySavingExpert.com website showed that a majority of adults in the UK would opt out if they have the choice.
The YouGov poll spoke to 1,665 adults and found that 57 per cent of those responsible for energy bills would decline the cash rebate, which the consumer champion has dubbed a ‘loan-not-loan’ scheme. The findings showed in every category of age and income - including those receiving benefits - that the majority of people would opt out.
Just a quarter (26%) saying they would actively opt into the scheme if they had the choice.
Last week the Chancellor announced that all electricity bills - including households using prepayment meters - in Scotland, England and Wales, would be reduced by a flat £200 in October.
Then, from the following April, all electricity bills will be increased by a flat £40 per year for five years.
Bill payers cannot opt out and it will impact every electricity bill.
The founder of MoneySavingExpert.com said: "I would ask the Chancellor to urgently rethink his energy bills £200 discount and clawback scheme.
“Bills are already sky-high, and on 1 April we now know most will rise by a previously unthinkable, and for many unaffordable, 54%. And sadly, when that ends in October, it currently looks possible the price cap will rise by another 20%. That will leave most people paying double what they were a year ago.”
He continued: “With this scheme, the Chancellor is effectively taking a worrying gamble with people’s finances. He is following the market’s view that rates will finally start falling later this year, meaning the price cap will fall in April 2023. Therefore, he hopes the impact of this scheme will mean lower bills now and in the future as the extra costs then will be covered by the drop in bills.
“That is far from certain, especially with the escalating conflict between Russia and Ukraine. And crucially, if rates don’t drop - or don’t drop a lot - people will be left in a lose-lose situation, with far higher bills than now and an additional levy on top.”
Do you think households should have the right to refuse the £200 energy credit? Have your say in the comments section here.
The financial guru, who conducted a live Q&A session on the energy crisis on his TikTok channel on Wednesday night, highlighted how the MoneySavingExpert.com poll shows most people aren’t willing to take this gamble.
He explained: “They don’t want to be a part of it - yet it is unavoidable. The state forcing people to do something against their will that is potentially damaging to their finances isn’t a good outcome.
“So, as I doubt it is technically possible to set up an opt-out scheme by October, in truth the best route for most is likely to scrap this scheme and come up with an alternative solution.”
Martin Lewis isn’t the only person asking for the UK Government to reconsider the £200 rebate.
A new petition on the petition.parliament.uk website is calling for energy customers to be given the right to refuse the £200 rebate.
The petition has already gathered over 300 signatures of support after being set up earlier this week and if it reaches 10,000 signatures, should prompt a response from the Uk Government.
The petition states: “Stop forcing people to accept a loan for energy without the right of refusal. This will put more strain on many financially and mentally. Make it fair for people and research a better payment plan that doesn't discriminate against children leaving home and relationship breakdown.”
It continues: “They [energy firms] will make a lot of money by charging £40 per annum to every consumer even if that consumer didn't have this £200 loan eg- child at home goes to uni and now owes £200 they didn't borrow as they were not the billed consumer at the time the loan was issued, ditto to relationship breakdown, both parties will be paying the whole amount even though they live apart ergo £200 borrowed £400 repaid.”
You can follow or sign the ‘Allow consumers the right to refuse the £200 energy rebate’ petition here.
Martin Lewis will be discussing the energy crisis on The Money Show Live on ITV/STV tonight at 8.30pm.
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