Interest of 1000% on a government oan

Will_Patterson

My daughter is currently in a student house of 10. Assuming she gets her own flat after graduating will the interest on her energy 'loan' be 1000%? Is this legal?

daveyjp

Yes because its not a loan.

PennineAcute

And if the other 9 also get their own flat?

As things stand, each household with an electricity meter gets £200.  Then each household, from April '23, pays back £40 a year over 5 years.

What I think is obscene is that a single person household pays 75% of the value that a two person household pays (assuming same area and band) for their council tax.  50% less people, but only a 25% reduction.  Bring back the Poll Tax if you are interested in a fair society (but that is for another debate).

Of everything that is wrong with the world, this £200 advance by the Government is way way down the list.

GingerTim

She will pay an extra £40 a year on her electricity bill, just like everyone else.

pallyman

Or if she moves back home she will pay nothing.

Ultrasonic

Some mathematical pedantry... If an individual got a 'loan' of £20 but then repaid a total of £200, the total 'interest' would be £180 or 900% rather than 1000%.

Will_Patterson

Thanks for these, and the correction on the ‘interest’ rate.    Perhaps 900% might be a bargain in a couple of years time.