How to apply for the 200 euro loan to cover the cost of bills

The Treasury is providing billions of pounds to help households meet the cost of rising household bills.

Measures announced by Rishi Sunak in February included a council tax refundan increase in the number of households eligible for the warm house rebate and a one-off refundable rebate of £200 on energy bills in October.

A record increase in the energy price cap from April means households are now facing an average annual increase in energy bills of almost £700. Sunak said the Treasury Department’s plans “will take the sting out of this significant price hike for millions of families,” although critics fear it will not be enough to counteract it Cost of Living Crisis.

How does the £200 discount work?

This scheme will give all UK households a one-time reduction of £200 on their energy bill in October. This amount is then repaid in installments of £40 over the next five years.

That government states that the rebate is not a loan. “There will be no interest, no debt incurred and your creditworthiness unaffected.” The scheme is a “universal measure” to help all households in England, Scotland and Wales. Funds are also allocated to Northern Ireland to provide “comparable support”.

Who is eligible for the £200 rebate?

Households with a household electricity connection are automatically eligible and in most cases the October bill reduction will be automatically applied by the energy suppliers – no application is required and there is no choice.

Vouchers will be given to people whose energy is prepaid via a meter to ensure they don’t miss out on the discount.

Details on the launch of the program are yet to be confirmed. The government began consultations with energy providers and consumer groups this week to determine how best to implement the scheme. This consultation runs until May 23 and a response from the government is expected in the summer.

Will it help?

Money Saving Expert‘s Martin Lewis has attempted to clear up the “confusion” surrounding the program by advising households that “the best way to think about it is some form of energy bill payment” and reiterating that “it’s not a personal loan to one.” individual gives”.

“This isn’t about ‘You borrowed money, you pay it back.’ So if you live at home with your parents and move out in two years’ time, even though you didn’t get the £200, your bill will still be £40 more – each household will be charged £40 more. You just get your energy bill and it will be higher because of this levy and October’s will be lower.”

Labor criticized the plan as “poorly designed Buy now, pay later Loan Scheme”. But Sunak said it would be “wrong and dishonest” to claim the government doesn’t have to “adjust to higher prices”.

Energy prices are not likely to come down “anytime soon,” he said Sky news. “Analysts are predicting the next price cap review in October will bring a further £400 hike, meaning government intervention may need to continue” to help households deal with the knock-on effect of global gas market prices. How to apply for the 200 euro loan to cover the cost of bills

Fry Electronics Team

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