Energy prices are rising by exorbitant amounts for everyone in the UK. In an effort to mitigate rising costs, Chancellor Rishi Sunak has announced a £200 rebate for every household in the UK – but this comes with conditions. How do I access reimbursement? And when will you have to pay it back?
Mr Sunak announced that the government would provide a £200 million rebate to 28 million homes in the UK to help them cope with rising energy costs.
However, the £200 loan will have to be repaid to the government over a period of five years.
Domestic electricity customers will benefit from the £200 rebate from October, when the government pays the bill for the £9.1billion energy bill rebate.
Mr Sunak said: “Right now I know the number one issue on people’s minds is the rising cost of living.
“That’s why the government is stepping in with direct support that will help around 28 million households meet their rising energy costs over the next year.”
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When will you have to repay the rebate on energy bills?
The Treasury said energy suppliers will apply the £200 rebate from October for customers in England, Scotland and Wales.
Customers will then have to repay that £200 in £40 increments over the next five years, starting in 2023, when “global wholesale gas prices are expected to fall”, according to the Treasury.
The Treasury move followed Ofgem, the energy regulator, confirming an increase in the energy price cap.
What does the discount on energy bills mean for roommates?
The discount is applied to a household, so if you share a home with other tenants you will only receive a £200 discount as a household, not as individuals.
However, if you are moving to live alone after being flatmates, you will have to repay the £40 down payment on the energy bills of your new accommodation yourself.
It also works the other way around, so if you live alone when you receive the £200 rebate, but later share your home with a partner or sharer, you’ll pay the rebates as a household, not as a household. than individuals.
So if someone paid the £40 installments on their £200 discount and they decided to move in with another single person paying £40 installments, their shared bill would stay at £40 and not increase to £80.