Martin Lewis: How the new flat rate £200 energy bill loan really works

GingerTim

EssexHebridean said:

GingerTim said:

FatherTireseus said:

I wonder if anyone will bring a legal challenge to say they shouldn’t repay the ‘loan’ because they never had an electricity account in October 2022 and never benefitted in the first place?

Has anyone brought a legal challenge to say they shouldn't contribute to the Warm Home Discount, as we all do, because they have never themselves benefited from it?

How about green energy costs? Surely there must be hundreds of folk challenging those on a daily basis because they don’t feel they get any benefit from those either? 🙄😆

Don't give people ideas! And wait until the Freemen of the Land hear about this...

MWT

FatherTireseus said:

I wonder if anyone will bring a legal challenge to say they shouldn’t repay the ‘loan’ because they never had an electricity account in October 2022 and never benefitted in the first place?

I'd love to see how that would be framed...

We are all going to be paying a levy, just like we do to cover the WHD or the costs of the SoLR scheme, as someone who has never been a customer of a failed supplier, or in receipt of WHD I should have quite a legal case to pursue

EssexHebridean

Anyone on here moaning about the levy who drives an electric car? If so, please forward a cheque immediately for all I’ve contributed through various taxes and levies over the past few years for the infrastructure that goes towards ensuring you can keep it charged sufficiently to allow you to get from A to B when required! 😂😂 Actually, you may as well make it a monthly Direct Debit - it won’t be stopping in anything LIKE as soon as 5 years, after all… 

markin

We all better install solar then!  And 14 tesla power wall 2's to get us through December.

kara_p_uk

Can someone help me understand this better?
Martin says in his video the bill will go up by £40 a year, does he actually mean there is a repayment to the value £40 per year on top of the usual bill rather than the bill will go up 40/year? 
Otherwise If the bill goes up £40/year say my bill is £1000/year. 

April 23 £1040 (I have paid back 40 so 160 remains)
April 24 £1080 (I have paid back £80 so £80 remains)
April 25 £1120 (I have paid back £120 so more than the £200?)

he must have meant an additional payment per year right?

Tigsteroonie

GingerTim said:

Here's a full transcript of Martin's analysis on the Government's new £200 energy loan

"This is going to happen. There is no choice about it. It is not optional and it is going to happen automatically on every single bill. Then from the following April, and for five years after that, you will then have your bill automatically - without choice - increased by £40 a year. That is how it will work."

I hope that's a mistake right there - surely it's "from the following April and for four years after that ... increased by £40 a year". April and four years after makes five payments which would equal £200. April and five years after makes six payments which would equal £240.

daveyjp

A case study as to why tax hypothocation isn't a good idea.

Cranberryberry

What happens if you change supplier or move home? What if you move from being an energy customer to not (eg by moving in with someone else). Can you extract the £200 via rebate?

And what if you have separate gas and elec suppliers? I which gets the £200 

MWT

Cranberryberry said:

What happens if you change supplier or move home? What if you move from being an energy customer to not (eg by moving in with someone else). Can you extract the £200 via rebate?

And what if you have separate gas and elec suppliers? I which gets the £200 

It will be applied to the electricity account only.

If you close your account the usual rules will apply and you'll get a refund of the balance.

QrizB

Tigsteroonie said:

I hope that's a mistake right there - surely it's "from the following April and for four years after that ... increased by £40 a year". April and four years after makes five payments which would equal £200. April and five years after makes six payments which would equal £240.

No, the text is right. There is no £40 payment; there's intended to be a £40 increase to your annual bill which you will pay over the year, roughly 11p/day, for five years (from April 2023 to April 2028).