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Original poster

How is the £400 energy payment being paid

68 replies

40andlols · 27/05/2022 08:49

Apologies if i'm being daft here... I keep seeing that this £400 in October will be added "in to the account" of anyone who pays for energy by direct debit.

Does this read as it will be put in to bank accounts? or energy accounts?

and if it's energy accounts.... does that mean direct debits will be adjusted? or that we'll have to claim refunds as our energy accounts will be in credit?

OP posts:
godmum56 · 27/05/2022 08:54

from the bbc website
"Instead, that sum will be doubled to £400 and will not need to be paid back. Direct debit and credit customers will have the money credited to their accounts, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher."

given that its being said that the average bill will rise by 800 quid a year (guessing that's over gas and electric) then I doubt there will be much to claim back for most people.

Original poster
40andlols · 27/05/2022 08:54

And does the £150 dla payment include children on dla?

OP posts:
Original poster
40andlols · 27/05/2022 08:55

godmum56 · 27/05/2022 08:54

from the bbc website
"Instead, that sum will be doubled to £400 and will not need to be paid back. Direct debit and credit customers will have the money credited to their accounts, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher."

given that its being said that the average bill will rise by 800 quid a year (guessing that's over gas and electric) then I doubt there will be much to claim back for most people.

Thanks @godmum56 but what i mean is "credited to accounts" does that mean bank account or energy account?

OP posts:

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Original poster
40andlols · 27/05/2022 08:56

I've just started a fixed rate for 2 years so mine won't increase by the £800 thankfully

OP posts:
CornishPorsche · 27/05/2022 08:57

www.moneysavingexpert.com/news/2022/05/rishi-sunak-martin-lewis-living-costs/#energy grant

given it'll be applied to your meter balance if you prepay, and it's intended to help with energy bills, I assume it'll go onto your energy account, not into your bank account.

SomethigWentBang · 27/05/2022 09:00

From what I have read elsewhere the £400 will be paid directly to your energy provider and will appear in your energy account. It is not a cash payment to your bank account.

Example: If you are -£200 in debit you will become +£200 in credit.

IncompleteSenten · 27/05/2022 09:07

I think that it goes as a credit onto your energy account.

I may be wrong. But I think the government is taking this windfall tax from energy companies (who have made record profits), then handing it back to them and in return the energy companies will put a bit of credit on to our accounts with them. The 'independent' government agency offgem will increase the energy price cap again in October so the energy companies will get it straight back with, well, I suppose you could call it interest.

And we feel like we were given something worth a shit and forget about partygate.

But like I said, I may have misunderstood.

BarbaraofSeville · 27/05/2022 09:17

I've read that it's been paid as credits in your energy account in 6 monthly instalments from October.

So your bill from October onwards will be £400/6 smaller than it otherwise would have been without the payment, but possibly still larger than you could ever imagine if you're on the price cap because it's going up by about 40% from what you're paying now.

Original poster
40andlols · 27/05/2022 09:20

BarbaraofSeville · 27/05/2022 09:17

I've read that it's been paid as credits in your energy account in 6 monthly instalments from October.

So your bill from October onwards will be £400/6 smaller than it otherwise would have been without the payment, but possibly still larger than you could ever imagine if you're on the price cap because it's going up by about 40% from what you're paying now.

Ah okay, i haven't read anywhere about it being in 6 installments but i guess that will mean no big credit on accounts.

I think a lot of people will be in the situation i'm in where energy companies went bust this year so we've only recently been put on fixed rates and won't see an increase in october.

OP posts:
Original poster
40andlols · 27/05/2022 09:22

CornishPorsche · 27/05/2022 08:57

www.moneysavingexpert.com/news/2022/05/rishi-sunak-martin-lewis-living-costs/#energy grant

given it'll be applied to your meter balance if you prepay, and it's intended to help with energy bills, I assume it'll go onto your energy account, not into your bank account.

This article is very informative, thank you

OP posts:
rbe78 · 27/05/2022 09:26

IncompleteSenten · 27/05/2022 09:07

I think that it goes as a credit onto your energy account.

I may be wrong. But I think the government is taking this windfall tax from energy companies (who have made record profits), then handing it back to them and in return the energy companies will put a bit of credit on to our accounts with them. The 'independent' government agency offgem will increase the energy price cap again in October so the energy companies will get it straight back with, well, I suppose you could call it interest.

And we feel like we were given something worth a shit and forget about partygate.

But like I said, I may have misunderstood.

When they say 'energy companies' with regards to the windfall tax, they don't mean energy providers (i.e. the company you pay for your gas and electricity).

They mean the companies that produce the energy in the first place (e.g. Shell and BP), who are getting the oil and gas out of the ground and are the ones that have profited spectacularly this year from the raised global prices of gas and oil.

So the goverment will be taxing the energy producers and giving it to the energy providers, who will then pass the rebate on to customers by crediting our energy accounts.

ShadowoftheFall · 27/05/2022 09:29

I don’t pay by prepay meter or direct debit, does that mean I don’t get anything?

FuchsAndMöhr · 27/05/2022 09:30

IncompleteSenten · 27/05/2022 09:07

I think that it goes as a credit onto your energy account.

I may be wrong. But I think the government is taking this windfall tax from energy companies (who have made record profits), then handing it back to them and in return the energy companies will put a bit of credit on to our accounts with them. The 'independent' government agency offgem will increase the energy price cap again in October so the energy companies will get it straight back with, well, I suppose you could call it interest.

And we feel like we were given something worth a shit and forget about partygate.

But like I said, I may have misunderstood.

Yeah, you misunderstood!

CornishPorsche · 27/05/2022 09:47

ShadowoftheFall · 27/05/2022 09:29

I don’t pay by prepay meter or direct debit, does that mean I don’t get anything?

You're a credit user then. It'll still be credited to your energy account.

ifonly4 · 27/05/2022 10:23

I read that the original £200 would be applied as a discount on your electricity account. I assume it's the same this time. Makes sense as we all use electricity and some people pay by cheque/cash so saves the hassle of paperwork.

EveryFlightBeginsWithAFall · 27/05/2022 10:25

Children are the only ones who receive dla aren't they? Doesn't it change to pip at 16 or 18

ShadowoftheFall · 27/05/2022 10:26

Thanks @CornishPorsche

Hoppinggreen · 27/05/2022 10:26

IncompleteSenten · 27/05/2022 09:07

I think that it goes as a credit onto your energy account.

I may be wrong. But I think the government is taking this windfall tax from energy companies (who have made record profits), then handing it back to them and in return the energy companies will put a bit of credit on to our accounts with them. The 'independent' government agency offgem will increase the energy price cap again in October so the energy companies will get it straight back with, well, I suppose you could call it interest.

And we feel like we were given something worth a shit and forget about partygate.

But like I said, I may have misunderstood.

No, I think you understand perfectly
Unlike a lot of people unfortunately

Fedupbuyer · 27/05/2022 10:27

You get £66 a month for six months,it won’t cover the increase in costs though that come into effect in October,people will still not be able to put their heating on!

EveryFlightBeginsWithAFall · 27/05/2022 10:27

If its like the cold winter payment you receive if you are on a low income then it will be credited to your energy account

Does anyone know if it's instead of the cold winter payment ?

OrganTransplant123 · 27/05/2022 10:29

How does it work for those with oil heating?

BeforeGodAndAllTheFish · 27/05/2022 10:32

OrganTransplant123 · 27/05/2022 10:29

How does it work for those with oil heating?

With oil heating, you still have an electrical bill. It will go to your provider. Instead of coming off electiecy and gas, it will come off your electricity.

nancy75 · 27/05/2022 10:33

So is it electricity or gas? I have 2 providers - where does it go?

Original poster
40andlols · 27/05/2022 11:01

EveryFlightBeginsWithAFall · 27/05/2022 10:25

Children are the only ones who receive dla aren't they? Doesn't it change to pip at 16 or 18

I believe there are still adults on dla who haven't moved over to pip yet

OP posts:
StarsOnAMat · 27/05/2022 11:02

nancy75 · 27/05/2022 10:33

So is it electricity or gas? I have 2 providers - where does it go?

I’m the same. How will they split it? How does the electricity company know I’ve also got gas? Or will it just go on electricity? Even with the £200 loan, I never saw it explained for those with two suppliers.