Paying your bills: who gets the £400 energy rebate?

With an expected 70% increase in the energy price cap and inflation on the rise, it may seem like this winter is going to be bleak. However, the government has pledged a £400 discount on energy bills this winter.

Over the last year fuel, inflation, and energy prices have soared. With a staggering 54% increase in April1, the average energy bill rose to £1,971 per year. While an energy cap can help with these increases, the current cap is set to rise again in October. This comes in line with rising inflation and bank rates and means that for many, this winter is going to be a tight one.

To ease some of this pressure, the government is introducing a cost of living support package. This comes as a no strings attached discount that could help millions of people across the country. This could be a lifeline to many and there’s no doubt it could keep many families afloat during the colder seasons. Part of this package is a £400 energy rebate.

How does the £400 energy grant work?

With the latest predictions placing the October price cap at a 70% rise, energy bills are expected to increase to around £3,500 per year. This is based off the average home, but these certainly don’t feel like average prices. That’s why the government has improved on their original proposal, which entailed a £200 loan to help with the cost of living. 

Now, not only will you get more money, you won’t need to pay it back2. We should note, however, that you won’t get the £400 in a lump sum. Rather, it will be paid out monthly until March 2023.

Who gets the energy rebate?

Nearly everyone is eligible to receive this rebate, though there are some exceptions. If you rent your home and the energy bill is included in your rent, then this money will go to your landlord. They should pass this rebate on to you, but there is currently no obligation for them to do so. 

If you live in a mobile home and pay your energy fee to the park owner and not directly, then you may not receive the payment. Similarly, if you live in a boat, your energy is typically included in any docking fees, so you also won’t get the grant.

How to claim the £400 energy rebate.

You don’t need to learn how to apply for the energy grant as every household will automatically get the discount. You won’t need to go anywhere, fill out any forms, or do anything out of the ordinary.

Those who pay their energy via direct debit will receive the discount as an automatic deduction from their debit amount, or as a refund to your bank account following the direct debit collection each month. 

Standard credit customers and payment card holders will see the discount applied to their credit card in the first week of each month. Customers on smart prepayment meters will have the discount credited straight to their meters in the first week of each month and traditional prepayment meter consumers will get a redeemable discount voucher or Special Action Message (SAM) to do the same. You’ll need to redeem these at your regular top-up point.

It’s important to note that at no point will someone ask for your bank details. There have unfortunately been reports3 of energy rebate scams occurring across the country, most notably with scammers pretending to be from major energy companies. 

When do you get the £400 energy rebate?

This grant will be paid out in 6 instalments from October and is designed to help families through the tough winter periods. This scheme will help 29 million households4 and will be administered by energy suppliers nationwide. 

The first payments will amount to £66 in October and November and rise to £67 from December through to March 2023. This discount will come monthly, regardless of whether you pay monthly, quarterly, or have another associated payment plan.

Fortunately, this also means that even if you move home during this period, you’ll still benefit from the right portion of the total £400 energy rebate.

Even if your energy bill is less than £67 per month, the remaining amount will be applied to your energy account, which means it could serve you longer than the initial discount period.

The silver lining on energy rises

The energy increases are a cause for concern, and this winter is certainly going to be challenging. However, schemes like the £400 energy rebate could help ease the burden. Get in touch with your supplier if you have any concerns.

1Reuters, 2022

2Inews, 2022

3Which, 2022


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