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Belfast Live
National
Brendan Hughes

NI £600 energy support payment details explained including how you will be paid

The £600 energy support payment for households in Northern Ireland will be rolled out from January, the UK government has said.

Electricity customers who pay by direct debit will receive the money automatically into their bank accounts, while others will be sent a redeemable voucher.

There has been uncertainty over how the payments would be delivered in Northern Ireland due to its separate energy market and Stormont's collapse.

Read more: Northern Ireland £600 energy support payment to be rolled out 'from January', UK government says

Here is a rundown of what we know so far about the much-delayed support scheme in Northern Ireland and how it will operate.

What is the Energy Bill Support scheme?

The Energy Bill Support Payment scheme was first announced by the UK government in May.

In Great Britain, households are having their electric bills cut by £400 over a six-month period, with a reduction of around £66 each month from October to March.

Northern Ireland households were promised an equivalent level of support. They are also to receive an extra £200 under the Alternative Fuel Payment scheme to account for the higher proportion of households here that use home heating oil.

But there has been uncertainty over the roll-out due to the complexities of Northern Ireland's different energy market and the absence of a functioning Stormont Executive.

What has the government announced?

Households in Northern Ireland will receive a single, one-off £600 payment to help with costs amid rising energy bills.

This will be rolled out "starting in January", the government announced on Monday.

It will fund Northern Ireland electricity companies for these payments, with direct debit customers receiving the £600 automatically into their bank accounts.

Other customers, such as those who use a pre-payment meter, will receive a voucher to redeem the £600 payment.

Do I need to contact my electricity supplier?

No, you do not need to contact your electricity supplier to receive the payment.

If you are a direct debit customer, you will receive the £600 automatically into your bank account.

Other customers will receive a redeemable voucher. The government has yet to set out how exactly this will work but pledged to do so "shortly".

It is expected the voucher will be posted to households rather than emailed.

Recipients will then be able to redeem it, receiving the money either as cash or deposited into their bank account.

It is expected recipients may be able to redeem the voucher at their bank or at Post Offices.

Customers will require identification to redeem the voucher, but it is unclear what forms of ID will be permitted.

With the payment being a universal scheme, it means those with a second home such as a holiday home will receive the payment twice.

Do I need to spend this on energy bills?

No, the payment can be spent however you see fit, whether that is on energy or other household bills.

It was originally due to be provided as a credit to electricity accounts, but government officials have enabled customers to use it on other things.

Energy Minister Graham Stuart last month told MPs there was "no point" having an electricity credit which did not assist with other costs this winter.

Will we really receive this money in January?

After months of delays and uncertainty, the government has said the payments "will start in January".

This leaves open the possibility that while the roll-out is scheduled to begin in January, not necessarily everyone will receive the £600 by the end of next month.

It is expected that direct debit customers may be the first to receive their payments, but the distribution of vouchers could take longer.

However, the government said Northern Ireland households will receive the payment "before" those in Great Britain receive the entirety of their £400 payment, which is being rolled out in monthly installments from October to March.

Why has it taken so long?

Northern Ireland's different energy market as well as the absence of a Stormont Executive have been blamed for contributing to delays in rolling out the scheme.

But the DUP, which is blocking power-sharing in protest against Brexit's Northern Ireland Protocol, has argued a scheme of this nature would always have needed central government involvement.

Northern Ireland differs from the rest of the UK because it has its own energy market with separate rules and regulation.

Officials have also had to consider matters such as home heating oil customers making up two-thirds of households in Northern Ireland - a much higher proportion than in Great Britain.

And around half of households in Northern Ireland use pre-payment meters, adding greater complexity to distributing the support payment.

The government has been accused of adding to delays by revisiting at a late stage in discussions the idea of enabling customers to "cash out" the payment.

It has also faced claims of using delays to put pressure on the DUP to restore Stormont power-sharing.

What has the reaction been?

Stormont parties and business leaders called for clarity over how the vouchers will work.

Sinn Fein's economy spokesperson Caoimhe Archibald said confirmation of the payment "will be a relief to people who are struggling with their bills" but called for clarity on the vouchers plan.

She argued the payment has been "held up by the DUP's boycott of the Executive and Tory government delays".

DUP MLA Gordon Lyons said he was "concerned" over how the voucher scheme will work as there was "still a lot of confusion".

He told BBC Talkback: "There are a lot of people who will have questions today about how this will work and when it will work, and that's a huge cause of concern."

Alliance MLA Kellie Armstrong said: "As things stand, those who have bank accounts and direct debits, so therefore more likely to be better off financially, will receive help first and securely.

"Meanwhile, the most vulnerable in society will be left at the back of the queue and likely to be paid last, with details still to be made clear around how and when they will receive support."

UUP MLA Andy Allen said the requirement for ID "may cause challenges" in ensuring people can avail of the voucher support.

He added: "This short-term intervention is both welcome and much-needed, however, it cannot be a substitute for local intervention to tackle the root causes of poverty and a reliance on fossil fuels."

SDLP MLA Matthew O’Toole said the payment was "long overdue" and accused the UK government of being slow to understand the different aspects of Northern Ireland's energy market.

He added: "SDLP MPs will hold the British government to account but this is another area where the DUP's boycott has prevented local ministers from acting."

Retail NI chief executive Glyn Roberts welcomed the announcement but said "further clarification is needed" for customers using pre-payment meters.

He added: "This clarity is just not important for those customers, but also for many of our members who process these top-up card payments in their shops. We need detailed guidance given to retailers on the next steps."

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