I Don't Want Government £200 Energy Loan

GingerTim

EssexHebridean said:

And on the flip side - what about the people currently living on their own who subsequently (after March 2023) move in with a partner - they will have gained 2 x £200 and only be paying back 1? Or those currently living alone in a bedsit who move to a house-share with others? Or those who die and won't have anything reclaimed from their estates? Or those who move into a care facility and never have to pay back the £200 because they no longer have an energy account...  Roundabouts and swings... 

I for one plan on snuffing it before I have to repay the £200 - in your face, The Man!

PennyForThem_2

If £200 'loan' hits in October AND it appears as credit on your account which is now in credit naturally (which is now £200++ because of summer usage in credit) AND you have provided actual readings, is there anything to stop you claiming the credit and investing it?  

MattMattMattUK

PennyForThem_2 said:

If £200 'loan' hits in October AND it appears as credit on your account which is now in credit naturally (which is now £200++ because of summer usage in credit) AND you have provided actual readings, is there anything to stop you claiming the credit and investing it?  

No one knows the specifics of that because the detail has not been published. 

A guess would be that is entirely pointless as investing it you would then have to pay your bill anyway, so just leaving it on the account and secondly the yield on £200 is going to be negligible, so low as to likely be pointless. 

PennyForThem_2

This is a solution though for those that 'don't want the loan'.  You could invest it as part of a S&S ISA possibly paying 4% interest.  Or take a gamble and buy premioum bonds...... you may win but the money is always there and easy to get at.

PennyForThem_2

Even better, but not recoverable immediately, put the £200 into a SIPP if you have one - you get your tax for this contribution back from HMRC - either as a further contribution to your SIPP (basic taxpayer) or as this + reduction of higher tax rate.

facade

PennyForThem_2 said:

Even better, but not recoverable immediately, put the £200 into a SIPP if you have one - you get your tax for this contribution back from HMRC - either as a further contribution to your SIPP (basic taxpayer) or as this + reduction of higher tax rate.

It wouldn't surprise me if the £200 was taxable as part of your income in the first place

Then you could pay £40 (or even £80 or £90 if you are rich) more tax, and repay the full £200 from money that has already been taxed.

Win, win for HMRC

jrawle

Dakota_2 said:

I don't want the government interfering in my financial affairs period. [...]

Presumably you also then object to them imposing an energy price cap, and would prefer to pay a free market rate for your gas and electricity?

Astria

jrawle said:

Dakota_2 said:

I don't want the government interfering in my financial affairs period. [...]

Presumably you also then object to them imposing an energy price cap, and would prefer to pay a free market rate for your gas and electricity?

I think a lot of people here would have preferred that along time ago!

kk20

Dakota_2 said:

I don't want the government interfering in my financial affairs period. Whose to say that when they claw it back energy prices have risen even higher so you get £40 added to an even more astronomical energy bill? Thanks but no thanks.

Put the £200 you would have spent in premium bonds.  removed when you are repaying.