Are many missing the point of the £400

Mstty

In every media article discussing the figures, including Martin Lewis, they all take into account the £400 coming off energy bills. Not spent on other inflation busting things just energy.

My question is :- How many are seeing this reduction in their direct debits and actually either putting that £66/67 saving back into their energy account(s) or squirrelling it away earning interest for a future large energy bill?

As an example we are putting the £66 away into a separate account and if we have a mild winter it may not be required but if it is, it is there ready or saved up until April 2024 when we see the dust settle.

molerat

I have already increased my DDs to take the increases into account so the rebate is just putting off paying the DD increase with my own money.  My budget spreadsheet has accounted for the increased energy spend without the £400 so it is just spending money to me.

I am sure though hat many will just spend it without taking next year into account.

maxmycardagain

mmmm, it isnt clear cut in many ways

my DD is being cut to £9.67 per month, i assume thats the standing charge?, and im getting the £67 "DISCOUNT" for 6 months

BUT..... im only using £40 worth of actual electric per month...

Can you see where im heading with this?

Will I build up a credit off the £400 energy grant or lose out?..

brewerdave

BG intend to give me the £66/£67 back each month after taking the current full DD.
In gratitude, I intend to transfer it to my malt whiskey purchasing account . Happy Xmas !!!

MWT

maxmycardagain said:

mmmm, it isnt clear cut in many ways

my DD is being cut to £9.67 per month, i assume thats the standing charge?, and im getting the £67 "DISCOUNT" for 6 months

BUT..... im only using £40 worth of actual electric per month...

Can you see where im heading with this?

Will I build up a credit off the £400 energy grant or lose out?..

It really is clear, you will get £400 over the 6 months, you will not lose out.

Depending upon which supplier you are with, the excess will either accumulate in your account or be automatically refunded to you.

Either way you will benefit from the full £400.

MattMattMattUK

The point of the £400 was a political bribe, as with all bribes it is up to the recipient what they choose to do with it.

Ultrasonic

Realistically I think the £400 extra should be at most seen as support for the next year, since the amount was originally predicated on the basis of typical annual bills. As such the logical thing to do would be for people on tight budgets to save half the £66 each month (£33) to then be used to help with DD amounts over the summer.

If everyone feels they can't spend any of the rebate/reduction then there won't have been any short term benefit at all.

Sea_Shell

I've said on another thread, that I think there will knock on issues from the way this is being done, in that energy account balances will not be reduced (or credit built up), and the £400's will get swallowed up elsewhere.

We'll all be better off by £400, but how much will actually go directly towards energy?

[Deleted User]

I have a suspicion that it came from the same root at the £200 loan that was discussed previously - simply something to assist with cash flow and not free money.  When the £400 scheme arrived, and didn't need to be paid back, nobody changed how they were thinking about it.  Even the way it's being paid is more like cash-flow support than a rebate to many people.

philipbin

I've put the £150 into a savings account and I'm going to put the £400 into the same savings account.

It will eventually be spent on energy.

Section62

Sea_Shell said:

I've said on another thread, that I think there will knock on issues from the way this is being done, in that energy account balances will not be reduced (or credit built up), and the £400's will get swallowed up elsewhere.

We'll all be better off by £400, but how much will actually go directly towards energy?

I think it has to be done that way though - if the £400 could only be spent on energy there would be a perverse incentive for people who normally use less to temporarily increase their consumption to take advantage of the 'free' energy.

Because the money can be used elsewhere, it will make (some) people think twice before wasting it on running the CH with the windows open, or leaving the TV  on 24/7.