Energy Loan

[SIRandyraven]

I made a life error of working all my life and ending up retired in a band E semi decent house, so now classified as rich by the government it seems.

With reference to the £200 loan. Is everyone getting this loan regardless and then have to pay it back over errr 5 years at £40 a year?
Can you opt out if you don’t want it?

We fixed our energy costs for 2 years in August 2021 and basically immune from the increases until the deal runs out.

[dannyk13]

The £200 is given in the form of a discount from the energy companies. I don't think that there is any way you can opt out.

[ladybirder]

I was wondering the same thing last night SIR as I don't want it either. I don't want to be in debt especially when I didn't put myself there!

[Buenchico]

The fine details don't seem to be available yet. e.g. as most people don't pay annually, it's not clear as to whether they'll get £50 knocked off in four successive quarters, £16.67 knocked off each month if they've got monthly direct debits, or whatever. Further, the exact way that the money will be clawed back doesn't seem to be known yet. (An increase in the standing charge seems to be the best bet but a small number of tariffs don't have a standing charge, so that could create problems).

However the universality of the scheme doesn't seem to be in doubt. It will apply to all households, with no option to opt out.

General information (as far as it goes for now) here:
https://inews.co.uk/inews-lifestyle/money/bills/energy-bill-rebates-explained-new-scheme-household-payment-rising-costs-1439743

Relevant discussion here:
https://forums.moneysavingexpert.com/discussion/6332221/how-can-i-opt-out-of-the-200-energy-scheme

[THECORBYLOON]

Could you not credit your account(s) with £200 to offset this year's reduction?

[ladybirder]

Is it legal to force debt onto those who don't want it?

[Buenchico]

^^^ Now why didn't I think of that, TCL?

Yes, of course. Anyway who doesn't like the idea of being 'in debt' can simply pay some money into their account. Problem solved!

[dannyk13]

Chris //will apply to all households, //
As far as I am aware it will only apply to households in bands A to D.

[THECORBYLOON]

CHRIS, your links show the £200 will come off bills in October.

[Buenchico]

Danny:
Given that energy companies don't know which Council Tax bands the homes they supply come into, such a scheme would be very difficult to administer.

It's actually a Council Tax rebate of £150, effective in April, that only applies to properties in Bands A to D. (Unlike the energy rebate, the Council Tax rebate won't have to be repaid).

This fills in some of the gaps:
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1052320/Energy_Intervention_factsheet.pdf

[dannyk13]

Thanks Chris, I stand corrected.

[cashier]

I also don't want this loan, I have never been in debt except when I had a mortgage. Can someone explain how THE CORBYLOON'S suggestion would work. Also, not everyone can afford £200 to put as credit in their energy account.

[Buenchico]

>>> Can someone explain how THE CORBYLOON'S suggestion would work

You can pay money into your energy account (or, indeed, get a refund of money that you've overpaid) at any time you like, Cashier, simply by logging into that account online. You don't have to wait for a bill or a meter reading.

[cashier]

Yes I know Buenchico, I even paid my heating allowance in last year to help cope with the rises. I don't understand how paying more in can offset the Loan, which we are getting whether we want it or not. It might help to paying it back.

[THECORBYLOON]

"Also, not everyone can afford £200 to put as credit in their energy account."

The £200 will be deducted from bills in October. If you wanted to, you could make a credit of £20 a month for ten month and then you would have paid back the £200 loan.

[cashier]

Finally it fell into place. I'm not usually so thick, thanks THE CORBYLOON and Buenchico.

[dannyk13]

I still think that there should be provision for refusing the discount.

[pastafreak]

What if you have a PAYG meter?

[ladybirder]

IF I could get into my British Gas account (which I was shoved into) I would pay the £200, but I can't. Every time it doesn't recognise my password so I create a new one which it accepts and then immediately doesn't recognise etc etc etc. This has been going on for months. Sorry that has nothing to do with the OP but is infuriating. Especially now.

[barry1010]

It doesn't matter what sort of meter you have.

It would be too expensive to administer an 'opt in / opt out' system. I don't see that this is anything to get alarmed about. Bills will be credited with the 'loan' when fuel bills are so expensive and, hopefully when the costs drop, the money will be paid back with an increase in the bills over a period of time.
It's a way of flattening out the price hike.

[Buenchico]

I assume, Pasta, that people who've got prepayment meters will be provided with £200 credit in some way. As different energy companies use different systems, that might mean receiving £200 worth of tokens, receiving a pre-loaded payment card with £200 on it or something else.