Energy "loan" from the Government

edited 7 February 2022 at 12:25PM in Loans
4 replies 381 views
Attacape2Attacape2 Forumite
1 Post
edited 7 February 2022 at 12:25PM in Loans
This is a copy of an email that I sent to The Treasury, I posted a copy of the wording on Twitter and it's getting a very good response.  I wonder if Martin would do a feature on his Show, as I feel that the legality of this needs to be brought into question.  I feel that the Government should follow the French and impose a maximum 4% increase in the Cap.

Dear Mr Sunak,

We are lucky enough to be in a position where we do not require a loan to help pay for our energy.

If we did need a loan, we would expect to have a apply for one and would read the agreement carefully before taking out the loan.

This scheme of yours appears to be flawed on so many levels;

1. You are trying to impose this loan on every household, without their permission.

2. There does not appear to be any written agreement.

3. Because there is no written agreement, we have no assurance that the energy companies will pass on the repayments to the Treasury.

4. If a £200 reduction is made to the energy bill of say a house of multiple occupancy, what happens when the individual occupants move on to different locations? Will all of those individuals be liable to repay £200 each?

There are so many other things I could mention, but I’m trying to keep this message brief as you may have a lot of similar messages sent to you.

My chief concern, however, is that this appears to be little more than a £200 gift to the energy companies using our money!

At best it allows the energy companies to keep increasing their prices, in a similar way that the Help to Buy scheme has kept house prices high. At worst, you are giving £200 per household to the energy companies that is our money, which will then be added back to our energy bills in the future!!

In short, I believe that this is a deceitful scam and must not be pulled off on a generally gullible public.


(Removed by Forum Team)  


  • aoleksaoleks Forumite
    711 Posts
    500 Posts First Anniversary Name Dropper
    there's a higher chance he'll read your letter if you name it "cheese and wine invoice".
  • edited 7 February 2022 at 12:06PM
    ThrugelmirThrugelmir Forumite
    89.5K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 7 February 2022 at 12:06PM
    If you are comfortably off then donate the money to charity. Better use of time and resources. 
  • edited 7 February 2022 at 12:56PM
    boonerukbooneruk Forumite
    97 Posts
    Fourth Anniversary 10 Posts
    edited 7 February 2022 at 12:56PM
    I listened to a fairly compelling argument for loaning money to the providers to shield consumers from the price spikes - can't remember the finer detail, but I think it was thisismoney's podcast a couple of weeks ago.

    Anyways, if "we" get the loan now but pay it back in future years, isn't that benefiting us due to inflation? Paying back the same amount of money with no interest in years to come? sounds like a win, even if a small one.
  • edited 7 February 2022 at 4:56PM
    pjcox2005pjcox2005 Forumite
    1K Posts
    Part of the Furniture 500 Posts Name Dropper Combo Breaker
    edited 7 February 2022 at 4:56PM
    The scheme clearly isn't perfect, but are you willing to lobby for Sunak to change it to one which may be means tested, miss vulnerable out and most likely slower and more costly to roll out just because some may end up paying an extra £40 per year.

    Without being flippant as i know for some £40 can be costly, but surely the message people should be trying to share is take the £200 now, don't cut off your heating or electricity if it leaves you exposed and don't not use the discount to buy food just because they'll have to pay it back.

    You would expect energy prices to reduce as things stabalise and you know people are going to follow prices closer so energy companies will be in focus. I just think people want to argue on this one and present examples like what if I'm in a house share and move out to own place, or a couple split up. Ignoring that it will happen the other way round.

    It's not perfect (and could probably go further by raising taxes in various areas or as you mention a cap but campaign on those separately), but if people are complaining about high energy prices then at least something has been done as well as adding the discretionary fund as well. Martin seemed reasonably accepting of it as a starting solution from the bits i've seen.
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