HOUSEHOLDS will have to repay energy bill refunds in instalments of £40 from April 2023.
Chancellor Rishi Sunak earlier today announced that all energy customers will get a £200 discount on their energy bill.
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The support is to help struggling Brits cover the cost of gas and electricity, as bills are set to soar £693 a year for around 22million consumers.
Customers will then pay back £40 a year over five years from April 2023, when it’s hoped that prices will have dropped.
The full details of how the scheme works have not yet been announced, but we’ll update here when they are.
Energy regulator Ofgem today said that the price cap will rise in April, pushing bills up by almost £700 a year.
The price cap is set according to wholesale costs which have rocketed over the winter.
Chancellor Rishi Sunak told MPs this morning: “The price cap has meant that the impact of soaring gas prices has so far fallen predominantly on energy companies, so much so that some suppliers who could not afford to meet those extra costs have gone out of business as a result.
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“It is not sustainable to keep holding the price of energy artificially low. For me to stand here and pretend we don’t have to adjust to paying higher prices would be wrong and dishonest.
“But what we can do is take the sting out of a significant price shock for millions of families by making sure the increase in prices is smaller initially and spread over a longer period.”
He also addressed Brits early this evening about the help on offer.
Energy bills have already increased and the majority of households are now on standard price capped tariffs because they are now cheaper than new fixed deals
What help can I get with my energy bills?
On top of the £200 energy bill rebate announced today, there’s other help you can get if you’re struggling with energy bills.
? Read our Energy price cap live blog for the latest updates
Speak to your supplier directly if you are struggling to pay your bill or are worried about falling behind.
It’s best to do this sooner rather than later as failed direct debit payments could cost you extra and affect your credit score.
Many suppliers run their own schemes offering help, or have charitable trusts to help pay arrears.
British Gas Energy Trust, for example, runs a scheme where anyone can apply for a grant, and you don’t have to be a customer.
Other firms that offer grants just to their customers include:
Your local council may also be able to help with cash and grants if you are struggling with bills through the Household Support Scheme
The winter fuel payment scheme, where those getting the state pension can get between £100 and £300 to offset the cost of keeping their homes warm.
Low income households can get £25 a week to help with energy bills during the winter thanks to the cold weather payment scheme too.
The warm home discount scheme means you can a £140 payment that goes toward your heating costs – but you need to act quick as this scheme has already closed at most energy suppliers.
You could be eligible for a budgeting loan if you’ve been on certain benefits for six months.
But while this can help cover some costs like if your boiler breaks down and you need to replace it, or you need to buy new energy appliances, like a washing machine or tumble dryer, you will need to pay the money back.
So check the other non-repayable help you could get first.
If you’re worried about paying bills, falling behind or are in debt, there are plenty of organisations where you can seek advice for free, including:
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