The increase in energy bills has been a huge worry for most of us over the last few months and even more so now as we head into winter. Thankfully, the Government has announced an energy bills rebate to help households cover some of the cost of rising energy bills over the winter. Read our explainer below to see what this means for your household.
What is the energy bills rebate?
The Government has launched the Energy Bills Support Scheme (EBSS) which will provide £11.7 billion of support to 29 million eligible households to help with energy bills.
The Energy Bills discount will apply to households in England, Scotland and Wales.
How much is the energy bills rebate?
The £400 discount will be paid over six months beginning in October 2022. In October and November, £66 per month will be discounted from your energy bill and in December-March, £67 per month will be discounted. The amount will be discounted monthly regardless of whether you pay monthly, quarterly or in one off amounts.
You will not be asked for your bank details to access the energy bills rebate. If you are, consider this a scam.
The discount is a grant so you won’t need to pay it back.
How will I receive the energy bills rebate?
If you pay by direct debit, the discount will be applied automatically to your direct debit amount or refunded into your bank account.
If you pay by standard credit or payment card, the discount will automatically be applied to your account in the first week of each month.
If you pay by smart prepayment meter, the discount will be automatically credited to your smart prepayment meter in the first week of each month.
If you pay by prepayment meter, you will be provided with redeemable vouchers or Special Action Messages (SAMs).
Do I need to apply for the energy bills rebate?
All households with a domestic electricity connection are eligible to receive the discount. This means your home is eligible but not a business premise.
The discount is paid automatically by your energy supplier so you don’t need to contact them to apply for it.
Will I get the energy bills rebate if I’m on a pre-payment meter?
You will receive redeemable vouchers or Special Action Messages (SAMs). You’ll get your discount by Special Action Message, or as a text, email or paper voucher from the first week of each month. Your supplier will also let you know where you can redeem your vouchers.
The vouchers are only valid for two months so make sure you use them as soon as possible.
I’m renting, will I still get the discount?
If your rent includes bills, your landlord should pass on the energy bills rebate directly to you.
There are rules that are designed to protect you as a renter and ensure you receive the discount. Ofgem has produced a guide on how to make sure renters aren’t charged more for energy than is necessary.
Will I still receive the energy bills rebate if I’m already in arrears with my energy company?
You are eligible for the discount even if you are already in debt with your energy company.
If you are in arrears, we would urge you to contact your energy company directly to arrange a repayment plan. Alternatively, check to see what CAP services are available near you.