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Government £200 Loan?
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I am not sure if there is already a thread about this on MSE?
Ok, so perhaps it is me, who knows, but I am mighty hacked off over the Governments £200 loan that they announced in February for all household energy accounts. Whilst I appreciate some people are happy to get this money, and will welcome it with open arms, I am sure some people are deeply unhappy at being given no choice at having a £200 loan thrust upon them without permission.
Having been in debt most of my life, and struggling to budget for years especially as I rely on DWP benefits, I am in a good financial place now, and I budget carefully each and every month to pay for things, I have savings, and I am content, and personally don't need or want this £200, which has to be paid back.
I perhaps might be being awkward, please don't judge me, but I have severe mental health difficulties, autism, and physical health problems. I especially find the mental health and autism side of things difficult to live with especially when it comes to money, and budgeting.
I don't want this money and I believe, somewhere, in some law of the UK, it has to be against my human rights to thrust upon me a loan of £200 that I have to pay back over several years, thus making my outgoing higher, especially given I rely on benefits and always worry, they could stop! I'll be honest the thought of this loan has been giving me sleepless nights and making me anxious!
If I take out an overdraft, or any credit agreement, I agree to certain terms and conditions, but I am not with this loan, it's simply being given to me, and then snatched back by increasing my payments on my energy bills.
I just wondered whether anyone else felt so strongly about this, that they wanted to challenge it further, perhaps in court?
Like I said, don't judge, debt worries me, paying back to much worries me, to the point it leaves me in a very dark place at times.
Ok, so perhaps it is me, who knows, but I am mighty hacked off over the Governments £200 loan that they announced in February for all household energy accounts. Whilst I appreciate some people are happy to get this money, and will welcome it with open arms, I am sure some people are deeply unhappy at being given no choice at having a £200 loan thrust upon them without permission.
Having been in debt most of my life, and struggling to budget for years especially as I rely on DWP benefits, I am in a good financial place now, and I budget carefully each and every month to pay for things, I have savings, and I am content, and personally don't need or want this £200, which has to be paid back.
I perhaps might be being awkward, please don't judge me, but I have severe mental health difficulties, autism, and physical health problems. I especially find the mental health and autism side of things difficult to live with especially when it comes to money, and budgeting.
I don't want this money and I believe, somewhere, in some law of the UK, it has to be against my human rights to thrust upon me a loan of £200 that I have to pay back over several years, thus making my outgoing higher, especially given I rely on benefits and always worry, they could stop! I'll be honest the thought of this loan has been giving me sleepless nights and making me anxious!
If I take out an overdraft, or any credit agreement, I agree to certain terms and conditions, but I am not with this loan, it's simply being given to me, and then snatched back by increasing my payments on my energy bills.
I just wondered whether anyone else felt so strongly about this, that they wanted to challenge it further, perhaps in court?
Like I said, don't judge, debt worries me, paying back to much worries me, to the point it leaves me in a very dark place at times.
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Comments
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Could you not just ring which ever department will be responsible for this payment and pay it back to them?
I imagine the costs and practicality of only giving it to the people who ask for it will be too high to justify.0 -
OrbitHeadache said:Could you not just ring which ever department will be responsible for this payment and pay it back to them?
This is not a loan in any conventional sense though @quest4me2. Just view it as if your energy bill for one year is £200 cheaper and then the next five are £40 more expensive. In practice this is what it will look like in terms of your payments to energy companies.
If it makes you more comfortable, put £200 into a savings account in the first year and then take £40 out each of the following years. You'll get a little interest for doing so too.
Do I think the government plan is a great one? No. But try not to see it as s big problem either.2 -
There are some other threads about this scheme but I understand that the search function is not always particularly useful!We don't have full details about the scheme yet and how it will operate. I personally don't want the "loan" either. You could challenge it but I'd suggest that the stress of doing so might affect your mentail health. You could write to yout MP though.What I decided to do is put £200 into a savings account when I get the credit. I will pay £40 into my electric account each year for the next 5 years that it needs to be paid back. I am ok to budget in this way.I do feel though that people who aren't great with budgeting will get the £200, use it up and then struggle with the extra £40 payments each year when it gets clawed back. So the scheme, to me, will not have the intended purpose of helping those in most need.I'm uncomfortable with having any credit sitting on my energy account as have been with two companies that went bust and it took 4 months to get my money back.I imagine the scheme is more to do with propping up the energy companies than helping out the general public.0
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OrbitHeadache said:Could you not just ring which ever department will be responsible for this payment and pay it back to them?There is no loan, there is no department.There is a payment from the Government to your energy account (just like the Warm Home Discount that some low-income households receive) and there is an additional element to the standing chanrge to pay for it (just like with the Warm Home Discount).No individual debt will exist, no individual balance will be tracked.N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.Not exactly back from my break, but dipping in and out of the forum.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!2 -
The reality is that it is not a loan, the best way to look at it, and the basis for it is that it is not a loan, hence many people calling it the "loan-not-loan". It is effectively a £200 discount on your energy bill in October and a surcharge after that, likely that the recovery will be managed by an increase to the standing charge.1
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And just think even those that did not receive the loan, once they open their own energy account, they too will have the joy of paying it back.
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Is there any practical way of, once I've got the £200 in my Elec a/c which will already be in credit due to a long term fix, of transferring to my gas, much in debt due to a variable tariff, ? .Both with EDF.Never pay on an estimated bill. Always read and understand your bill0
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Robin9 said:Is there any practical way of, once I've got the £200 in my Elec a/c which will already be in credit due to a long term fix, of transferring to my gas, much in debt due to a variable tariff, ? .Both with EDF.You'll have to ask EDF.If they can't transfer it directly, see if you can get a refund from your electricity account and then make a payment to your gas one.N. Hampshire, he/him. Octopus Intelligent Go elec & Tracker gas / Vodafone BB / iD mobile. Ripple Kirk Hill member.
2.72kWp PV facing SSW installed Jan 2012. 11 x 247w panels, 3.6kw inverter. 34 MWh generated, long-term average 2.6 Os.Not exactly back from my break, but dipping in and out of the forum.Ofgem cap table, Ofgem cap explainer. Economy 7 cap explainer. Gas vs E7 vs peak elec heating costs, Best kettle!0 -
Robin9 said:Is there any practical way of, once I've got the £200 in my Elec a/c which will already be in credit due to a long term fix, of transferring to my gas, much in debt due to a variable tariff, ? .Both with EDF.1
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I'm just waiting for the complaints about the landlord having taken the £200 as they do the bills & then passing the bill back to the tenant so they have to pay it back. The joys to come!!The £200 won't even pay one months DD now let alone next month when it's going up by 54%.0
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