The Government has released details of how its £200 per household energy bill support scheme will work, including no extra money for struggling Brits – just don’t call it a loan
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The British will pay that back £200 Government Energy Credit £40 a year for five years, according to plans presented today.
The Government wants to introduce a £200 rebate on energy bills per household this year to help rising energy costs .
The program requires the government to give cash to energy companies, which then use it as a reduction on bills.
However, the money must be paid back.
Today the Government launched a consultation on what the details of the Energy Bills Support Scheme will be.
The Government still insists the £200 loan is a grant and not a loan – because it charges no interest.
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The Collins dictionary defines a loan as “a sum of money that you borrow”.
The £200 government money seems to qualify as you have to pay it back in the form of higher energy bills.
MoneySavingExpert’s founder, Martin Lewis, has even referred to the system as a “loan-not-loan”.
Last week was Energy Secretary Greg Hands laughed at by a BBC television audience for refusing to designate the program as a loan.
The government doubled down in its consultation today, saying: “Reducing energy bills is not a loan. There is no interest payable, no debt owed, and it will not affect your credit score. It’s now a grant with a levy on future bill payers.”
Here are 10 things you need to know about how it works and what the government is planning.
1) UK domestic electricity customers will receive a £200 reduction on their electricity bill from this October.
2) Repayment costs will be capped at £40 per year, meaning households will pay back the loan for five years.
3) The discount will be automatically applied to energy bills from October 2022.
4) How you get the 200 euro loan depends on whether you have a prepayment meter or pay by direct debit.
5) All customers in England, Scotland and Wales will receive the £200. Northern Ireland has received enough money to start its own scheme.
6) If you live in a car park or apartment building you may not receive the £200. Because it is paid to the person named on the invoice, in these cases to a landlord, who passes the costs on to the tenants. The government is still working to fix this problem.
7) You can’t opt out and have to take the £200 even if you don’t want to.
8) If you switch energy suppliers within the five-year payback period, pay back any outstanding cash to your new energy company.
9) Government still refuses to reduce energy bills except for the £200 loan and a £150 council tax refund .
10) The exact workings of the program will be finalized and published by the government this summer.
https://www.mirror.co.uk/money/ten-things-you-need-know-26688397 Ten things you need to know about a $200 energy loan — from repaying to getting out