How are government measures helping with energy bills?

How are government measures helping with energy bills?

By: Shell Energy

07 Mar 2022

The Government has announced new measures to help households with their energy bills. Here’s our guide to the measures and what they mean for you.

There are still some details to run through in terms of how the schemes work, but here’s what we know so far about what the Government is proposing, and how you can benefit.

The electricity bill discount

What is it?

A £200 cash discount on your bill this autumn. This will appear in October, and will be paid for in regular instalments over the following five years. These will likely kick in from 2023-2024, and will be applied to your standing charge.

Who qualifies? 

Every household in England, Scotland and Wales, regardless of household income.

What do I have to do? 

You don’t need to do a thing. We’ll automatically apply the cash discount to your bill from October.

What if I have a prepayment meter? 

The details are still being worked out. But if you have a smart prepayment meter, it’s likely the cash discount will be applied directly to that. If not, you may well receive a voucher or something similar. 

Will I have to pay the money back? 

The scheme is designed to spread the impact of higher energy prices over a longer period. With that in mind, every household will pay it back automatically in equal annual instalments over five years. Energy prices are expected to fall by 2023, lowering your bills, so this is when repayments can start.

What happens if I don’t want the money? 

The Government has decided that all households in England, Scotland and Wales (but not Northern Ireland, where energy policy is devolved) will receive the £200 discount. 

Some of our customers have already said they’d rather not take this money, or would like to donate it to those who need it more. We’re considering how we can help here.

The council tax discount 

What is it? 

A £150 rebate on your council tax bill.

Who qualifies? 

Households in council tax bands A-D. That means 80% of UK households will benefit from the rebate. Not sure what council tax band you’re in? Check the Government’s website

What do I have to do? 

Nothing. Your local authority will add the rebate to your bill in April. If you pay your council tax by Direct Debit, your account will be credited with a one-off £150 payment. If you don’t pay by Direct Debit, your council will process your claim for you. 

Will I have to pay the money back? 

No, you won’t need to repay the money.

What else is the Government doing?

The Government is making more households eligible for the Warm Home Discount so that three million households will now benefit. And from October, the discount will increase by £10 to £150.

Is there any other government support available to me?

If you’re a pensioner, or on certain means-tested benefits, there are other government initiatives open to you. We’ve created a support hub, where you can see exactly what schemes are available and how to access them. 

What support is Shell Energy offering? 

We understand that many of our customers will be feeling the pinch of higher energy bills. Visit our hub where, along with details of government schemes, you’ll find debt support and energy-saving advice. 

What if I can’t pay my bill? 

If you can’t pay your energy bill, the most important thing you can do is get in touch. A member of our friendly team will tell you how we can help. Remember, no matter what happens, we won’t cut off your energy supply.