Cost of Living: Who Gets Payment for Winter Fuel?

The UK Government announced earlier this year that households will get a £400 cut on their energy bills this winter as part of the effort to tackle soaring bills as the cost crisis of life is felt.

The policy was announced by former Chancellor Rishi Sunak along with other measures including a one-time payment of £650 for around eight million households on means-tested benefits; a one-time payment of £300 to over eight million pensioner households to be paid on top of their winter fuel payment; and a one-off payment of £150 for around six million people across the UK who receive certain disability benefits.

As the Tory leadership candidate vying to succeed Boris Johnson this summer, Mr Sunak promised further handouts but was eventually beaten by Liz Truss, who moved quickly as PM to freeze Ofgem’s cap at £2,500 for two years, but has yet to promise more. direct payments to citizens.

After declaring his opposition to “handouts” in a campaign interview with The Financial TimesMs Truss and her new Chancellor Kwasi Kwarteng could still find themselves forced to do more, as analysts at Cornwall Insights have warned that the scale of the energy crisis is such that Ofgem’s cap could have breached the 6 mark £000 by April 2023 had the government failed to act.

A miserable winter is still forecast for millions of households with inflation at 9.9%, its highest level in 40 years, sending the price of consumer goods and fuel skyrocketing while wages stagnate.

Here’s a look at how people will get the discount they’ve been promised.

How will the £400 rebate be paid?

Households will start receiving money on their energy bills from October, with the reduction being made in six installments.

A reduction of £66 will be applied to energy bills in October and November, rising to £67 each month from December to March 2023.

How will I get the discount?

It will be administered by the energy suppliers. Those with a household electricity meter point paying for their energy by standard credit, debit card and direct debit will receive an automatic deduction from their bills.

Traditional prepayment meter customers will receive vouchers on their energy bill the first week of each month, issued by SMS, email or post, using the customer’s registered details. These customers will need to arrange to redeem them at their usual top-up point, such as their nearest payment point or local post office.

Prepayment smart meter customers will have the rebate on their energy bill credited directly to their prepayment smart meters during the first week of each delivery month.

Suppliers will need to report to the government on the steps they are taking to ensure support has been passed on to consumers, including telling customers in writing that they have received the £400 energy bill rebate and ensuring that it is clearly indicated on invoices or statements.

Do I have to give my bank details?

No. It’s important to keep in mind that scammers can use this as an opportunity to strike – just as they did when financial support was announced at the start of the coronavirus pandemic and it caused a slew of fakes. rebate e-mails and text messages claiming to be from official bodies.

The government says no household should be asked to provide their bank details at any time. Ministers urge consumers to remain alert to potential scams and report them to the authorities.

Fraudulent texts, for example, can be reported to 7726 and Ofcom has information on how to do this here.

Will I need to refund the money?

No, it is not refundable.

People struggling with their energy bills should contact their supplier. Ofgem’s rules mean providers must offer payment plans people can afford and customers can apply for “emergency credit” if they use a prepaid meter and cannot top up.

You can find more information about this and the schemes, grants and benefits available here.

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