Energy Bills Rebate Announced


Chancellor Rishi Sunak has announced a package of support following the recent rise in the energy price cap. The Energy Bills Rebate has two parts:

1 £200 reduction in energy bills

Energy suppliers will apply a discount of £200 to around 28 million domestic electricity customers from October 2022, with the Government meeting the costs.

The discount will then be automatically recovered from people’s bills in equal £40 instalments over the next five years. This will begin from 2023, when global wholesale gas prices are expected to come down.

2 £150 Council Tax Rebate

80% of households, in council tax bands A-D, will be paid from local authorities from April 2022. This element of support is not repayable.

For those people who do not pay Council Tax, an additional amount of £144 million in discretionary funding will be provided.

The Energy Bills Rebate announcement comes after energy regulator Ofgem announced an increase to the energy price cap as a result of the soaring global wholesale price of gas, which has quadrupled in the past year. The increase in the energy price cap will cause a £700 increase in energy bills for the average household from April 1st 2022. As part of the announcement it was stated that the Energy Bills Rebate will reduce that amount by half for the vast majority of households.

You can find more details in the Energy Bills Rebate Factsheet.

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