Get at least £400 off your Energy Bills this Autumn

Not a week seems to pass without prices rising. The cost of fuel, milk and eggs and hundreds of everyday items have risen by over 10% in the past few weeks alone. Furthermore, energy bills are due to go up by hundreds of pounds this autumn as the new energy cap comes into play.

Get at least £400 off your Energy Bills this Autumn

Yesterday (26-05-22) the Chancellor announced that every single household would receive a £400 reduction in their energy bills. This announcement replaces the previous announcement made in February 2022 where a £200 discount was going to be applied, but would have to be paid back over five years.

Do I need to pay back the £400?

The short answer is an emphatic no. Unlike the previous announcement offering a £200 discount, this time round the £400 is an actual saving and does not need to be paid back.

Will taxes be going up as a result to fund this?

Increased taxes will fund this saving, but a ‘windfall tax’ is being introduced on energy companies to pay for the savings. The focus will be on companies who extract gas and oil from the ground, although electricity generation companies may also face higher taxes.

Who gets the savings if I am in a flat or house share?

The savings will come straight off the energy bill so the actual bill will be lower. That means when it comes to paying for your share of the bill, the bill will be £400 lower meaning your share will also be lower.

Do I have to claim the savings?

No. Your bill will be reduced automatically so there will be no need to contact anyone about the savings.

Is additional help available?

There will be some further help available if you fall into one of the following categories:

- 8 million low-income households who receive Universal Credit, tax credits, pension credit and other means-tested benefits will receive a further £650. This payment will be made straight into bank accounts..

- Those on disability benefits will receive £150 in September 2022 which may be on top of the £650 mentioned above..

- If your household has at least one person of pension age, you will also receive an extra £300 in either November or December 2022.

Summary

The savings being offered will come as a welcome relief to everyone but with prices rising at a faster rate than at any time in the last 40 years support had to be forthcoming. In addition to the savings mentioned above, you should also make sure you don’t miss out on the £150 Council Tax rebate being offered to all households living in council tax bands A-D. As tenants you also qualify for this rebate as long as you are paying council tax and your property meets the criteria.

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Remember the content provided in this article is for information purposes only and should not be considered as advice.