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Part of £400 energy rebate may be used by supplier to pay off account arrears this winter
01.11.2022 - 17:33 / dailyrecord.co.uk
Some 28 million households across the UK with a direct domestic electricity contract with their supplier will receive a £400 rebate this winter to help with rising energy bills. The money will be deducted automatically from Direct Debits or smart meters for the next six months, finishing at the end of March 2023.
The first wave of discounts for £66 started in October for most households, however, people living in park homes or those whose energy bills are included in their rental agreement re set to to receive the financial support from the UK Government by the end of the year. People on older-style pre-payment meters are receiving vouchers which they can then top up at any PayPoint.
However, many energy customers may not be aware that when the credit is applied directly to their account, it may be used to clear any arrears they may have or go towards an agreed debt repayment plan.
The information came to light in a written response from Business Minister Graham Stuart MP, after he was asked by Peter Gibson MP “whether energy suppliers are permitted to take funds paid through the Energy Bills Support Scheme to settle domestic energy debts in cases where there is a payment plan in place through the benefits system”.
The Conservative MP is referring to the Fuel Direct Scheme. Earlier this year, the DWP introduced a temporary change to the Fuel Direct scheme in order to protect people claiming benefits from soaring energy bills and is in place until April 1, 2023.
This means that energy suppliers can no longer request new deductions or increased payments from a claimant’s benefit to pay for ongoing fuel consumption.
At the time DWP said: “For claimants who pay for their ongoing fuel usage directly from their benefits, the
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