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Energy bills: The quantity Britons pays with £400 rebate and ‘price cap freeze’ | Personal Finance | Finance

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The cash might be paid over the six coldest months of the yr, starting with payments of £66 in October and November, rising to £67 from December to March. Prime Minister Liz Truss recently announced a “freeze” on the rising energy price cap, with the everyday UK household to pay not more than £2,500 on energy bills for the subsequent two years.

Prior to the brand new policy, the common household’s yearly bill was to extend to £3,549 from October 1 under the newest Ofgem price cap.

The £2,500 Energy Price Guarantee will apply in Scotland, England and Wales, superseding the worth cap until 2024.

Government officials are in discussions with energy suppliers about how the guarantee policy might be implemented, but it would not affect the £400 rebate.

Which means that homes on a typical tariff will see their bills increase from £1,971 to £2,100, after the discount has been applied.

READ MORE: NS&I offers a boosted three percent fixed rate on savings – are you eligible?

This price is ready as the identical price as that paid by the person reselling it, with the Government expecting landlords to pass on the discount.

Landlords with a domestic connection who charge all inclusive rent, with fixed energy costs as a part of the rental charge, also needs to pass on the rebate to their tenants.

For individuals who shouldn’t have a domestic electricity meter or a direct relationship with an electricity supplier, further funding is to be provided similar to the £400 rebate.

More details about how this scheme will work are to be announced by ministers within the autumn.

What happens to those that switch suppliers or my home situation changes?

The discount might be applied by meter points, so it would not be affected if an individual switches supplier.

The scheme will provide six monthly payments based on six qualifying dates moderately than based on a single date in October.

Which means that recent eligible households will still profit from the relevant portion of the overall £400 as there might be several qualifying dates.

Further Government support goes out to people on low incomes, including a £650 one-off payment to people on certain advantages, including Universal Credit.

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