Rishi's £200 loan is really a sneaky tax

[GreenLunchBox]

So you are not allowed to refuse this 'loan' and from April 2023 everybody's bill will go up by £40 a year regardless of if you received the £200 or not.

twitter.com/MartinSLewis/status/1489584984235065344?t=joBqwQ20p5VPx3EKYUT2tQ&s=19

Some scenarios:

1. A married couple receive the £200 now then split up. In their new houses they each pay back the £200 over the next five years. So it's actually COST the couple £200

2. 5 students in a house share receive the £200 between them (so receive £40 each). They all move out and then each get charged £200 separately over the next five years. Government gets £1000 when they were only given £200.

3. A young person living at home about to move out. They didn't receive the £200 as it went to their parents, but they have to pay an extra £200 on their bill over the next five years

When you scale this up the government are going to make an absolute bloody fortune from this - doubling or quadrupling their money in some cases whilst pretending to be the good guy.
What a racket they're running.

AIBU to say we need to stop this racket?

@Procrast why dont you cancel the ditect debit and pay monthly? The DD discoumt is tiny

People who use payment meters will either get credit or vouchers or cheques, depending on how smart their meters are.

Landlords paying the bills for their tenants would have suddenly hit with large additional costs from April anyway. I'm not sure what they'd have done without this intervention and what they'll do now. DS is in student halls in a 4 person flat - I'm assuming the university will get a big hike in their bills, which they can't pass onto the current students because they pay annually, and then they'll get a rebate of £200 per flat (?) to reduce their bills slightly in October so they can moderate the rent increase for the 2022-23 year. But in the private sector it'll be anyone's guess what individual landlords will do - it'll depend on the local rental market.

@GreenLunchBox

So you are not allowed to refuse this 'loan' and from April 2023 everybody's bill will go up by £40 a year regardless of if you received the £200 or not.

twitter.com/MartinSLewis/status/1489584984235065344?t=joBqwQ20p5VPx3EKYUT2tQ&s=19

Some scenarios:

1. A married couple receive the £200 now then split up. In their new houses they each pay back the £200 over the next five years. So it's actually COST the couple £200

2. 5 students in a house share receive the £200 between them (so receive £40 each). They all move out and then each get charged £200 separately over the next five years. Government gets £1000 when they were only given £200.

3. A young person living at home about to move out. They didn't receive the £200 as it went to their parents, but they have to pay an extra £200 on their bill over the next five years

When you scale this up the government are going to make an absolute bloody fortune from this - doubling or quadrupling their money in some cases whilst pretending to be the good guy.
What a racket they're running.

AIBU to say we need to stop this racket?

I being thick here but the £200 is this year

So we start repayment this year, which means those in your scenario who leave after April this year, will in fact only repay £ 160 over 4 years, reducing each year

No it’s not good but it’s not what you say

But how this works for landlords of big bills-inclusive blocks of flats is a question. Any landlord who gets a single bill for the entire block (and this might be universities or social housing so not just parasites who deserve all they get) would be screwed if they only got one £200 discount.

When you scale this up the government are going to make an absolute bloody fortune from this - doubling or quadrupling their money in some cases whilst pretending to be the good guy. What a racket they're running.

The government will get back exactly what they put in, by design. Yes there will be fringe cases of people paying in more than they get out, every such pound will be offset by someone receiving more than they put in. Unless the actual number of houses where no-one is using electricity changes over time, which seems unlikely.

So we start repayment this year, which means those in your scenario who leave after April this year, will in fact only repay £ 160 over 4 years, reducing each year

'Repayments' start next April.

There are only so many houses in the U.K. though, and they all have one electricity supplier/gas supplier.

On country wide scale they won’t ‘make money’, the amount of houses won’t change any more than the extra houses that are built in that time. So they’ll get £200 for every house that’s built

Individually, yes, it may affect you if you’re part of the niche cases given.

It will end in such a state of confusion with people splitting up, moving ect, as well as costing a fortune to administer, that no doubt billions will need writing off again like the corrupt PPE deals have led to.

Is there any way they can look into this madness ? Surely there must be a better way than this ?

@Mossstitch

It will end in such a state of confusion with people splitting up, moving ect, as well as costing a fortune to administer, that no doubt billions will need writing off again like the corrupt PPE deals have led to.

Please watch the Martin Lewis video which explains it.

I have many objections to this scheme, but one thing they have NOT done is made it difficult or complex to administer.

@CharacterForming

But how this works for landlords of big bills-inclusive blocks of flats is a question. Any landlord who gets a single bill for the entire block (and this might be universities or social housing so not just parasites who deserve all they get) would be screwed if they only got one £200 discount.

If they get one £200 discount (i.e. if there is only electricity bill for the whole block), they will also only have to repay £200.

How exactly would they be screwed?

Describing it as a rebate puts Sunak on dodgy ground. And there is a way of challenging this misrepresentation. Report it to the FCA. www.fca.org.uk/consumers/misleading-financial-adverts/report
He is advertising this 'rebate' on his social media accounts (I've seen it both on Twitter and Facebook) and if you screengrab it you can easily report him.

@Mossstitch

It will end in such a state of confusion with people splitting up, moving ect, as well as costing a fortune to administer, that no doubt billions will need writing off again like the corrupt PPE deals have led to.

Moving won’t cause confusion. Think of it as they give £200 to every address, and then take it from every address regardless of who lives there. It doesn’t matter to the scheme as a whole who lives there - the house at 20 High Street, Town A gets £200, and then pays £40 a year after that, whoever lives there. It’s just added to every bill, not bills for specific people that they need to keep track of.

Individuals will be affected by either splitting up, starting a new household and so paying more. Or by combining households and paying less.

When I say that large scale landlords might be screwed if they had a single bill I mean by the price rises, not the "loan" system itself. A refuge or halfway house for example might have a huge increase in energy costs but only get the same £200 reduction to flatten out the costs as someone in a one-person flat.

@CharacterForming

When I say that large scale landlords might be screwed if they had a single bill I mean by the price rises, not the "loan" system itself. A refuge or halfway house for example might have a huge increase in energy costs but only get the same £200 reduction to flatten out the costs as someone in a one-person flat.

The residents as well of those places as well - they won’t get £200 but if they move out they’ll still have the £40 added to their bills.

This £200 will only flatten the impact of price rises if 2022 turns out to be a spike and energy prices reduce from 2023 onwards. But that may not happen.

@AnotherForumUser

Describing it as a rebate puts Sunak on dodgy ground. And there is a way of challenging this misrepresentation. Report it to the FCA. www.fca.org.uk/consumers/misleading-financial-adverts/report He is advertising this 'rebate' on his social media accounts (I've seen it both on Twitter and Facebook) and if you screengrab it you can easily report him.

Done! Thank you

The only way the government make out of it is if the county's housing stock increases as it is loaned/repaid against each electricity supply.
With any blunt tool there will always be winners and losers and every example of household expanding that you gave can be countered by the exact opposite with households combining or someone dieing.
The cost of administering at an individual level + the cost of reclaiming from the deceased estate/those who emigrate etc would be prohibitive.
While I don't necessarily agree with the whole thing, they way it is proposed is the simplest method.

"Simplest" is often the same as stupidest.

If, like me, you are really not happy about this £200 loan/levy then please make it clear to your MP. You can do this quickly and easily at this link:

www.writetothem.com/

@AnotherForumUser

Describing it as a rebate puts Sunak on dodgy ground. And there is a way of challenging this misrepresentation. Report it to the FCA. www.fca.org.uk/consumers/misleading-financial-adverts/report He is advertising this 'rebate' on his social media accounts (I've seen it both on Twitter and Facebook) and if you screengrab it you can easily report him.

Thanks for this. I will do it and I hope others do too.

On that note, are all those who are against this "loan" happy to write to their MP? Is it worth me starting another thread?

[quote bigdecisionstomake]If, like me, you are really not happy about this £200 loan/levy then please make it clear to your MP. You can do this quickly and easily at this link:

www.writetothem.com/[/quote]
Done! That was SUPER-EASY!!

Apologies. The money allocated to Scotland is for the devolved government to use instead of the £150 council tax reduction.

As usual it's the young ones that will pay for this. Us oldies are fine because chances are we'll receive the £200.

People like me who don't need the 'loan' will just add it on to their savings/ investments that month.

It's ludicrous.

@AnotherForumUser

Advertising Standards too maybe. Would that work do you think?