Every UK household will cut its electricity bill by £400, Chancellor Rishi Sunak has confirmed.
part of the shortage £10 billion aid package To get families through the cost of living crisis.
Families were to be given a £200 refund on their bills in October – but the idea was widely slated because it was a debt that would all have to be repaid.
Now the aid has been doubled to £400 – and families will not have to pay back.
The chancellor has been under pressure to do something to help families facing exponential bill growth.
energy bill 73% increase in the last 12 months.
one year ago price range Was £1,138 and is today at £1,971 – an increase of £833.
expected to hit £2,800 in October Watery eyes are 146% more than this time last year.
Here’s what you need to know:
When will my electricity bill be deducted?
The government announced help for families in February, including £150 council tax energy exemption for a family of four out of five.
It also disclosed plans to implement a £200 off every energy bill in October,
But this second giveaway was actually planned to be a loan, which families would have to repay in £40 installments over a five-year period.
This was said to be unfair to those who can’t benefit from the giveaway now but will have to pay in the future – for example, someone who is living with their parents this year but who moves out next year has gone.
Now Sage has said that he is eliminating the £200 exemption and instead offering a £400 grant, which will not be repaid.
This will be given automatically to all families in England, Scotland and Wales – you will not need to apply.
Energy suppliers will be tasked with delivering money to all homes with electricity meters over six months starting October.
Money will be deposited in the account of direct debit and credit customers.
Families with pre-payment meters will either have money installed on their meters or pay through vouchers.
How much will my energy bill cut?
Sage is set to cut bills by £400 – but there is other help being offered, including:
Cheap, in part, a . will be funded by unexpected tax on energy firms.
Campaigners, politicians and charities have called for additional charges on suppliers as families struggle to pay their bill
Families have seen their energy bills skyrocket in recent months.
The energy price cap rose 54% in April, bringing the average household bill to £1,971. A further 42% is expected to reach £2,800 in October.
One of the main reasons for the rise in prices is that Wholesale energy costs are rising Due to global supply issues and the war in Ukraine.
But energy providers have seen their profits increase. oysters A record £7bn was raised in the first three months of 2022 and BP earned £5bn, its biggest profit in the last 10 years.
The windfall tax is a one-time levy imposed by the government on companies, designed to make firms pay more tax than they would have if they benefited from something they weren’t responsible for.
In this case, it would target energy supplier Those who have registered sky-high profits.
Do I have to pay the money back?
There is a significant difference between the already planned £200 energy bill refund, and this new £400 rebate that families will not have to pay back.
Ministers were also considering cutting the council tax bill- Band A to D. for over £150 off Already announced.
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