£200 loan from the Government

Angrykat

I am absolutely exasperated at the fact that we are not allowed to decline the offer of £200 loan in October. For Rishi Sunak to say that it would be too difficult to individualise for those who do not want it is ridiculous. The Government could easily initiate an opt in scheme. I certainly do not want to have to pay £40 back over the next 5 years when household bills will just increase more over that period.

QrizB

Welcome to the forum.

The discussion thread for the £200 loan is here:

https://forums.moneysavingexpert.com/discussion/6332457/martin-lewis-how-the-new-flat-rate-200-energy-bill-loan-really-works

MWT

As envisaged, it is not being tracked at an individual level, neither for the initial bill reduction, nor for the eventual collections to cover the cost of the reductions.

This is why it is unhelpful to characterise it as a 'loan'.

The people who benefit from the reduction will not be the same as the people who pay to cover the cost of that reduction.

You cannot opt out of getting it any more than those who didn't get it, but later on open an electricity account, can opt out of paying for it...

ChaunceyGardiner

The Government could easily initiate an opt in scheme.

Operating such a scheme would almost certainly cost the taxpayer more than simply applying the loan to all households.

EssexHebridean

ChaunceyGardiner said:

The Government could easily initiate an opt in scheme.

Operating such a scheme would almost certainly cost the taxpayer more than simply applying the loan to all households.

Exactly this. I don't particularly want it - and indeed am fortunate enough that I don't particularly need it, BUT right now it's probably the best way of getting some short term assistance to those who DO need it. An "opt-outable" scheme would be far most costly to administer, and would lead to many of those most vulnerable allowing their pride to get in the way and opting out in spite of it leaving them in even more fuel poverty than they are already.  so no - I don't particularly want it BUT I'm prepared to swallow that because right now what I - from my fortunate position of being able to afford to heat my home AND feed my family - want as an individual is far less important than making sure those who aren't in that fortunate position get some help. So I will shut up, try to ensure my account stays £200 in credit through the relevant period, and then allow that £200 to leak away at the £40 a year rate for the following five years. It really IS that easy. 

facade

Set up an online account at NS&I, buy £200 of premium bonds with it, then gradually cash them out back into your bank account as required to repay the loan. You might win something.

Astria

Angrykat said:

I am absolutely exasperated at the fact that we are not allowed to decline the offer of £200 loan in October. For Rishi Sunak to say that it would be too difficult to individualise for those who do not want it is ridiculous. The Government could easily initiate an opt in scheme.

They could, and it would cost many thousands (and knowing this government, probably millions) to administer, whioh you end up just costing you and me more. This way is the cheapest way of doing it. If you don't want it either leave the £200 in your energy account as credit, or put £200 in a high interest savings account, or buy some premium bonds, etc.

Aylesbury_Duck

Or pay £200 into your energy account to cancel out the credit, meaning it's there to pay the 5 x £40 that will come out in future.  In other words, you are to all intents and purposes, declining the £200.

Swipe

facade said:

Set up an online account at NS&I, buy £200 of premium bonds with it, then gradually cash them out back into your bank account as required to repay the loan. You might win something.

It's extremely unlikely you would win anything over 5 years on £200 of premium bonds. I had £200 for over 25 years and won nothing.

Astria

Swipe said:

facade said:

Set up an online account at NS&I, buy £200 of premium bonds with it, then gradually cash them out back into your bank account as required to repay the loan. You might win something.

It's extremely unlikely you would win anything over 5 years on £200 of premium bonds. I had £200 for over 25 years and won nothing.

But not impossible.

You could spend £200 on the lottery and win nothing, but you could also win millions...

jbuchanangb

I think I will try to manage my electricity account to achieve a £200 credit position at end of year zero, then £160 credit position at end of year 1, £120 end of year 2, etc to a balanced position at end of year 5. Not sure how easy that will be though.