Rishi Sunak confirms £350 Energy Bills Rebate scheme

Millions of customers will get a ‘discount’ on their energy bills

Big Zero Report 2022

The Chancellor has today confirmed a new Energy Bills Rebate scheme that will support customers cope with the rising energy bills.

A few minutes after Ofgem’s announcement of the new price cap, Rish Sunak confirmed the programme which was previously reported as the government’s response to the energy crisis.

The Chancellor said: “Today we are announcing that we are stepping in to help people deal with one of the biggest costs, they face, energy to protect around 28 million households from rising costs.”

He said the scheme, a £9 billion package of support will give the majority of households a discount of £350 on their energy bills.

Mr Sunak explained that all domestic customers in Britain will receive an upfront discount on their energy bills worth £200.

Suppliers will apply the discount on people’s bills from October this year.

That discount will then be automatically recouped from customers’ bills in equal installments over the next five years of £40 a year.

The scheme aims to spread the cost of this year’s energy shock over time.

The Chancellor added: “Secondly, in April, we are going to give a £150 council tax rebate to households and bands A to D to help with the immediate cost of energy.”

That measure is predicted to give further support to around 80% of all homes in England.

Commenting on the measures, Adam Scorer, Chief Executive of National Energy Action, said: “These energy crisis measures are woefully inadequate and will leave those on the lowest incomes and in the least efficient homes in deep peril.

“Government had an exam question: How to protect the most vulnerable from a devastating rise in the cost of energy? While their plans are not without merit, they fail this test by turning away from targeted measures to help the poorest energy consumers. 

“We needed deep, targeted support for the most vulnerable. We have shallow, broad measures for all. That simply does not work.

“The depth of support is not proportionate to the increases. A household paying by prepayment will still have a £500 increase when you take into account rises from October 2021 and April 2022. The rebates on Bills and Council tax are not sufficiently targeted, too small and too complex.”

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