You are here: Home - Household Bills - News -

27 million households bag £1.8bn energy bill help in October

0
Written by:
18/11/2022
Millions of Brits received the first £66 towards spiralling fuel costs in October, as a total £1.8bn was paid out in the month as part of the Energy Bills Support Scheme (EBSS).

Over 27 million households received £66 off their energy bills last month as part of the first instalment of the £400 energy rebate scheme.

This figure was split between:

  • Direct debit reduction: nine million households, worth £595m
  • Direct debit refund: 8.5 million households, worth £565m
  • Credit: six million households, worth £402m
  • Smart meter: two million households, worth £134m
  • Traditional meter: two million households, worth £135m.

By biggest supplier number, 5.5 million payments were made to British Gas customers, 4.7 million to E.ON, 3.7 million to OVO, 3.2 million to EDF, 3.2 million to Octopus, 2.4 million to Scottish Power and 1.3 million to Shell Energy.

According to the Department for Business, Energy and Industrial Strategy (BEIS), 97% of eligible households in England, Scotland and Wales received the discount.

While vouchers were sent to two million customers with traditional prepayment meters, these households were urged to redeem them as soon as possible, after figures showed only around two thirds (1.2 million) had already done so. Here the value of payments made stood at £135.5m, but so far, just £80m has been redeemed.

Suppliers will tell customers where to redeem them, for example at a Post Office branch or a PayPoint shop. Payzone outlets are unable to accept the vouchers.

Vouchers are valid for 90 days only and all vouchers must be redeemed by 30 June 2023.

This is the first payment made through the EBSS since it launched in October and will see households receive a total £400 discount on energy bills paid in six monthly instalments:

  • October: £66
  • November: £66
  • December: £67
  • January 2023: £67
  • February 2023: £67
  • March 2023: £67.

The second instalment of the EBSS will reduce households’ November energy bills, which brings the total amount spent on the scheme so far to £3.8bn.

Secretary of State for Business, Energy and Industrial Strategy, Grant Shapps, said: “The government is committed to supporting people facing unique stresses with the cost of living and rising energy costs. Today’s figures show how we are making a difference in over 27 million homes across Great Britain.

“All vouchers have now been sent to customers who should have them, so I urge everyone who uses a traditional prepayment meter to make sure they receive their voucher from their supplier and redeem them promptly so they get the energy bill support they are entitled to.”

Budgets on energy bills

Myron Jobson, senior personal finance analyst at Interactive Investor, said their calculations show that the £400 total discount means the average household will spend 8% of their entire budget on energy bills over the six-month period to the end of March, instead of 11%.

“The situation remains bleak for poorer households. They could spend almost 16% of their budget on energy bills over the same period with the £400 discount taken into account, instead of 23% without it. But this group could still spend twice as much on gas and electricity bills this winter than they did last year.

“For higher earners, the £400 discount means they could spend the same percentage (3%) of their budget on energy bills as they did last year, instead of 5%.”

Just yesterday, the Autumn Statement confirmed the Energy Price Guarantee would rise to £3,000 in April (£2,500 currently) and would be extended for 12 months.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Your right to a refund if travel is affected by train strikes

There have been a wave of train strikes in the past six months, and for anyone travelling today Friday 3 Febru...

Could you save money with a social broadband tariff?

Two-thirds of low-income households are unaware they could be saving on broadband, according to Uswitch.

How to help others and donate to food banks this winter

This winter is expected to be the most challenging yet for the food bank network as soaring costs push more pe...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week