With ever-increasing energy needs and demands, the cost of energy bills is also increasing. The government has declared measures to help with the costs of energy bills.
Even though there is still little clarity as to how this will work, the government has proposed this, and here is what is known so far.
Discount On The Electricity Bill
You can get a £200 discount on your electricity bill this October. So this scheme will apply to your standing charges and will be set in from 2023 to 2024. In this scheme, every household in Scotland, Wales, and England is eligible for the discount, irrespective of their income. And the best thing about it is that the discount will be applied to your bills automatically from October.
Since this scheme is planned to reduce the impact of high energy costs over a long period, this amount will need to be repaid in equal installments over a period of 5 years. It is predicted that the energy costs will reduce by 2023, so during this time, the repayments can be made.
What Happens If A Household Does Not Want The Money?
For now, according to the government, it has been decided that all the houses in Scotland, Wales, and England will receive this set discount of £200.
So if there is someone who says they do not want to take this money, or they want to donate this money to those in need can come forward. However, this aspect and how it will be dealt with is still under consideration.
Discount on Council tax
This discount scheme applies a discount of £150 on the council tax bill. Around 80% of the households in the UK are going to benefit from this discount scheme. In order to be eligible, you have to be in council tax bands from A to D.
If you are not sure which council tax band you are in, then you should check it out as soon as possible. In this discount scheme, the discount will be added to your energy bill in April.
So if you pay this tax through direct debit, then your account will be credited with a £150 one-time payment. And if you don’t pay through direct debit, then the council authority will process this claim for you. And the best part about this is that you will not have to repay this money.
What Else Is Proposed By The Government?
The government has also introduced the warm home discount scheme where 3 million households will benefit from this help. Their energy bills will be reduced, and the discount will increase by £10 – £150 from October.
So if you are of low income and receive certain benefits, or you are a pensioner, then these initiatives are for you. You can easily find out which scheme is accessible for you and how you can apply. Read more here.
The fuel hike, along with an increasing demand for energy, has increased energy costs. This, in turn, is affecting households across the country.
So if you are unable to pay your energy bills, then it’s imperative that you find out which scheme you are eligible for. The initiatives taken by the government are put in place for you only, so take advantage of them.