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

I feel like all the uncertainty shows a lack of understanding from government about how normal people manage their finances and bills.

I used to be well off. I had no idea about dla, pip, credits or debt on energy bills, what "low income" actually meant officially or the different types of benefits, tax credits etc.

These people surely have a duty to know how confusing it all is and publish full information that's clear for people?

why are we all left to figure it all out amongst us??

OP posts:
IncompleteSenten · 27/05/2022 12:26

"Yeah you misunderstood"

Did I?
So what's happening is not the following?

Sticking with just one company for each as an example for ease of writing

Energy cap has been increased and we're paying more and getting very angry about it. Government wants us to shut up. They talk to shell. Shell pays this windfall tax to the government. The government gives that money to Scottish power. Scottish power puts it as a credit onto my account. Offgem increase the cap again a few months later on the regular review schedule by enough to ensure that in the long run people will more than repay the initial 'tax' shell paid out. My energy costs even more than Scottish power credited me from the government transfer they got from shell. Scottish power gives that money plus the extra back to shell to buy the energy.
People think the government helped some people, creating resentment and cries of I might as well give up work (actually read that on Mumsnet more than once over the last few days). Media does the classic redirect, pay no attention to the man behind the curtain flat screen TV sky watchers and outrage about - for example - drunken people vomiting in number 10 and cries for Boris to resign fade.

Obviously I know there are admin blah blah costs. I'm looking at the basic 'follow the money'.

To me it seems a simple connect the dots. If I'm not understanding why the above is not the basic circle here I genuinely would love to be corrected.

ClaudineClare · 27/05/2022 12:35

It will be applied to electricity accounts only, I guess because not everyone has mains gas.

Interested in this thread?

Then you might like threads about these subjects:

Cost of living General money
PaddingtonBearStareAgain · 27/05/2022 12:40

40andlols · 27/05/2022 11:05

I feel like all the uncertainty shows a lack of understanding from government about how normal people manage their finances and bills.

I used to be well off. I had no idea about dla, pip, credits or debt on energy bills, what "low income" actually meant officially or the different types of benefits, tax credits etc.

These people surely have a duty to know how confusing it all is and publish full information that's clear for people?

why are we all left to figure it all out amongst us??

If you were on dla or pip then you would know though. They aren't means tested. You can be a millionaire and if you qualify recieve dla or pip.

Part of it is also people jumping in without reading (not you) There are threads on this where the same question is asked umpteen times or people are kicking off about not getting anything then having to back track.

godmum56 · 27/05/2022 12:45

ClaudineClare · 27/05/2022 12:35

It will be applied to electricity accounts only, I guess because not everyone has mains gas.

where have you seen this said please?

Original poster
40andlols · 27/05/2022 12:48

@PaddingtonBearStareAgain my dd (child) gets dla though and I can't find anywhere if it applies to children or just adults

OP posts:
Original poster
40andlols · 27/05/2022 12:49

Ah sorry I see where my post was confusing. I was well off before disability hit our family - so me not being well off, and subsequently knowing about disability benefits happened at the same time. But i know it's not means tested so you can be well off and claim

OP posts:
ElizabethG81 · 27/05/2022 13:33

Does anyone know what happens for people who don't have individual meters, e.g. in apartment blocks where all energy bills are included in an overall monthly payment to a management company?

unicornsarereal72 · 27/05/2022 13:58

DLA is for children. My son turns 16 this summer I have the paper work to apply for PIP. I'm not holding my breath. We are well and truly screwed if he doesn't qualify. He presents well and does not have insight into the realities of his needs

godmum56 · 27/05/2022 14:41

ElizabethG81 · 27/05/2022 13:33

Does anyone know what happens for people who don't have individual meters, e.g. in apartment blocks where all energy bills are included in an overall monthly payment to a management company?

so do people in those circs pay a set amount each month regardless of usage? wow, I'd have hot baths 5 times a day!

PaddingtonBearStareAgain · 27/05/2022 14:46

unicornsarereal72 · 27/05/2022 13:58

DLA is for children. My son turns 16 this summer I have the paper work to apply for PIP. I'm not holding my breath. We are well and truly screwed if he doesn't qualify. He presents well and does not have insight into the realities of his needs

DLA can be for adults. Some haven't been moved over to PIP

EveryFlightBeginsWithAFall · 27/05/2022 15:02

Some over 70s

gamerchick · 27/05/2022 15:24

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.

How I see it as well tbh. A wink at the energy companies.

Tinkerbellone · 27/05/2022 15:29

I am wondering if my Children will qualify for the £150? Or if it's only for every household? I have 4 children, 3 with disabilities 2 who have DLA.
It's confusing. Sad

GladysEehmmanuel · 27/05/2022 15:33

Isn't it a double bonus for the energy companies though, they get the windfall tax back immediately with a direct payment plus a future discount on tax if they invest in the UK, and of course they pass on any investment costs to us by way of standing charges.
So really we are getting nowt and paying for any future investment ourselves.
And we get to be grateful for their benevolence.
Sweet deal unless I'm misunderstanding?

ElizabethG81 · 27/05/2022 16:00

@godmum56, yes, you pay a set amount but it gets altered each year to reflect how much has actually been used. So if the block of apartments uses more then everybody ultimately pays for it as it is averaged out and paid by everybody. We've had notice that the energy part of the management fee will be going up drastically in July (as I expected), but was just wondering if anyone knew what would happen with this £400 payment. I suspect I won't see a penny of it.

YouCantBeSadHoldingACupcake · 27/05/2022 16:07

Tinkerbellone · 27/05/2022 15:29

I am wondering if my Children will qualify for the £150? Or if it's only for every household? I have 4 children, 3 with disabilities 2 who have DLA.
It's confusing. Sad

I'm wondering this as well. 2 of my children get DLA and dh is on PIP. Will we get one lot of £150 for the household, or one per disabled person?

PaddingtonBearStareAgain · 27/05/2022 16:08

GladysEehmmanuel · 27/05/2022 15:33

Isn't it a double bonus for the energy companies though, they get the windfall tax back immediately with a direct payment plus a future discount on tax if they invest in the UK, and of course they pass on any investment costs to us by way of standing charges.
So really we are getting nowt and paying for any future investment ourselves.
And we get to be grateful for their benevolence.
Sweet deal unless I'm misunderstanding?

How is it a double payment when everyones bill is reduced by £400.

Yes they get it back initially but it goes again by being allocated to every household so the consumer is paying £400 less.

Hawkins001 · 27/05/2022 16:20

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.

Seems a good Machiavelli, analysis.

Babyroobs · 27/05/2022 17:05

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

Many older adults still receive DLA too, if they have not yet been switched to PIP or are over a certain age.

Original poster
40andlols · 27/05/2022 17:20

unicornsarereal72 · 27/05/2022 13:58

DLA is for children. My son turns 16 this summer I have the paper work to apply for PIP. I'm not holding my breath. We are well and truly screwed if he doesn't qualify. He presents well and does not have insight into the realities of his needs

That's exactly where we are too. very worrying. they have granted me appointee though so i'm hoping that will help. It was very easy (worryingly so when I thought about the vulnerability of some people). They will write to you to apply if they haven't already

OP posts:
Original poster
40andlols · 27/05/2022 17:21

Tinkerbellone · 27/05/2022 15:29

I am wondering if my Children will qualify for the £150? Or if it's only for every household? I have 4 children, 3 with disabilities 2 who have DLA.
It's confusing. Sad

Are you under the impression children will get it at all? I couldn't find any information on it

OP posts:
unicornsarereal72 · 27/05/2022 17:38

@40andlols yes just done the form now waiting on a visit. I'm going to go all the way to court if I have to. My son has needs above and beyond his peers. And although will be independent further down the line it's a while away. He can't cook on his own. Only walks to school alone because there are no roads and has lots of prompts throughout the day to be Independent. I for see Stressful times ahead

Franklin12 · 27/05/2022 17:58

My Father is in a care home ( late 80’s). Will care home residents get it as he doesn’t have a personal electricity account. He self funds and also gets attendance allowance.

gamerchick · 27/05/2022 17:59

Franklin12 · 27/05/2022 17:58

My Father is in a care home ( late 80’s). Will care home residents get it as he doesn’t have a personal electricity account. He self funds and also gets attendance allowance.

It's not going into people's Bank accounts.