When will the £200 energy rebate be paid and how do you get the payment?

HOUSEHOLDS have to fork out a lot more cash to cover their energy costs from April 1 – but the government has set out a £200 discount to help.

Bill payers will have to wait a little longer to make use of it though, as it’s not due to come in until October.

The government announced the £200 discount on energy bills back in February.

It’s designed to help struggling households, as prices continue to rocket.

But the money-off that’s being offered has to be repaid eventually – so some savings experts including Martin Lewis have likened it more to a loan than a simple bill reduction.

The biggest difference though is that there is no interest payable like there is with a typical loan – and it’s not something you can pick and choose to be a part of either.

The rebate will be applied automatically to every single bill in the country and is not optional – so you can’t choose not to get it.

At the time he announced it, Chancellor Rishi Sunak said: “Energy suppliers will apply the discount on people’s bills from October, with the government meeting the cost in full.”

But households are facing an imminent £693 a year hike to energy costs when the price cap goes up from April, so they’ll have to wait a few months yet for the new help to kick in.

And by then, another hike in energy bills could come too.

The price cap is always reviewed twice a year so that means it can be adjusted in April and October.

A rise in April is forcing bills to shoot up by 54% to £1,971 a year for the average default dual fuel bill, but the exact amount you pay will depend on your usage.

By the time the next adjustment arrives, six months from now, it could go even higher, with some estimating annual bills could hit nearly £3,000.

In October every single electricity bill in England, Scotland and Wales, will be in line to get the £200 rebate.

It’s even been rumored that Boris Johnson could double the £200 energy loan to £400 later this year if the cost of living crisis continues to deepen.

We explain what we know about the confirmed £200 rebate for now, including when it will be paid and how you will get it.

When will the rebate be paid?

It’s due to come in October, so in your bill that month, you should see a £200 reduction.

And if you don’t get this you could be given a bill credit instead.

If you’re on a prepayment meter, it could be paid through your smart meter or you could be given a voucher or a cheque.

The energy bills rebate will provide around 28million households with this upfront discount on their bills according to the government.

But from next April, and for five years after that, you will then have your bill automatically increased by £40 a year to slowly pay it back.

At that point it’s hoped that the energy market will have returned to normal and prices won’t be as sky high.

How do you get the payment?

You will get the discount automatically, so there’s nothing you have to do to opt in.

But that also means you can’t opt out either.

Even Martin Lewis has weighed in to attempt to clear up “confusion” and “misunderstanding” around the scheme as he explained how it’s “not optional – you can’t choose not to get it.”

The rebate isn’t strictly personal either.

So if for example you were living with your parents, the household as a whole would get £200 off energy bills in October – it’s not £200 per person.

But then when you move out you would have the £40 “levy” added on to energy bills you were paid from April 2023.

Other help for energy bills

The £200 rebate isn’t the only government help at hand for struggling households.

But time is running out to apply for many of the aid that is on offer.

Ending today is the £300 winter fuel payment which helps cover pensioners’ energy costs during the harshest months.

It’s also the deadline for many Household Support Fund applications, where councils give out free cash and vouchers to hard-up families struggling to pay their bills.

But a new lot of cash through this fund should be available soon via your local council from April.

There’s also the £140 Warm Home Discount Scheme but applications have closed until next winter.

Millions of households will be getting a £150 council tax rebate from April to help cover the cost of rising bills too.

You’ve got to be in council tax bands A to D to be eligible.

The council tax rebate won’t directly bring your energy bills down, but the £150 is designed to help households battle the cost of living.

You can also apply for help through your energy provider’s hardship scheme if it offers one.

British Gas has just announced further funding for its version of the help, offering £2million more to those who are struggling.