Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Nottingham Post
Nottingham Post
National
Rachel Pugh & Sam Barker & Karen Antcliff

£200 towards fuel bills and every UK household could be eligible

It is no secret that household costs are rising but according to reports help could be at hand.

Every household in the UK is set to be given £200 to help offset the rising price of energy.

However, this isn't just a gift.

With warnings of rising fuel and food bills from the likes of Money Saving Expert Martin Lewis, and stories of families choosing between 'heating or eating', the assistance couldn't come at a better time.

Here's what we know so far as reported in Manchester Evening News.

Instead of a grant, the cash would be a sort of loan.

The money would help with the immediate problem of high energy bills, but the government wants the cash to be repaid over time.

The scheme would see £6billion of taxpayer cash handed to energy firms, which would be used to lower energy bills for each household.

However, this cash would be paid back by consumers over the following years in the form of slightly higher bills.

Why are energy costs going up?

Bills are rising for several reasons.

Much of the increase reflects the soaring cost of gas, not electricity.

Reasons behind this rise include supply and demand, as there was a very cold winter in Europe last year.

British homes are heavily reliant on gas, making the problem worse.

Most homes (86.3%) have gas central heating, the Office for National Statistics (ONS) said this week.

Are energy bills set to rise again?

The cost of most energy bills is capped by the energy regulator, Ofgem.

This cap limits the amount firms can charge the average customer on their default gas and electricity tariffs - usually variable-rate deals.

This cap is currently £1,277 a year for those on default tariffs and £1,309 for those on pre-payment deals.

It is technically a cap on how much energy firms can ask you to pay for rates.

The price cap is being reviewed next week for England, Scotland and Wales - Northern Ireland has a different system.

Any changes would kick in from April, but the new charges are set to be announced tomorrow.

It is overwhelmingly likely that Ofgem will raise the cap - meaning households will pay even more for energy.

To sign up for the Nottinghamshire Live newsletter click here

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.