Money Saving Expert Martin Lewis has given an urgent update on the free £150 the Government is handing out to people across the UK to help with rising energy costs. In England the money is being given to people in Council Tax rebates while in Wales the cash is coming through the devolved Government.
But Martin says people have been confused by the money and are asking how they can refuse it. The problem has come because the Government is handing out two lots of cash to help with rising bills. Energy bills went up by 54% on April 1 and will go up again in October.
The first handout is a Council Tax rebate - basically a smaller bill - which people are getting from April and which does not have to be paid back. The second amount is a £200 'loan' being given to people in reduced energy bills from October - which will then be paid back with higher bills in future.
Taking to Twitter to explain, Martin said: "IMPORTANT. Concerning the £150 energy rebate on Band A-D council tax due April/May for most. Some saying to be "I want to refuse it, I don't want a loan!" This ISN'T a loan That's the loan-not-loan scheme coming in October (and isn't r refusable) This one doesn't need repaying."
Not everyone will get the money - including anyone whose house in not in bands A-D. It is unclear how some tenants and students who don't pay council tax or those who don't use direct debits will benefit.
Martin added: "If you're not in Band A - D but are struggling financially each council will have a discretionary fund to help - which can pay up to £150. Though eligibility varies by council. Do look it up though if you need it"
Explaining how to get the money Martin said: "How to get Apr/May £150 council tax Band A-D energy rebate? Usually... if paying by Direct Debit its auto-paid to ur bank. If not ull get 'how to claim' letter. Don't claim & ur bill'll be discounted"
The Money Saving Expert site has a two-minute video explaining the £200 loan coming later this year.
