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Belfast Live
Belfast Live
National
Lauren Harte

What we know so far about the £400 energy bill discount amid efforts to bring scheme to NI

Discussions are continuing around how to deliver an equivalent £400 energy bill discount to householders in Northern Ireland.

In May, the government drew up plans to help all households in the UK with rising fuel bills.

But the lack of a functioning Executive or Assembly as part of the DUP's protest against the post-Brexit Northern Ireland Protocol meant it was unclear how the scheme would reach Northern Ireland.

Read more: Chancellor 'absolutely committed' to £400 energy bill discount for Northern Ireland

Chancellor Nadhim Zahawi has said he is confident about bringing similar measures here.

Mr Zahawi will meet Stormont's economy and community ministers again next week to discuss the delivery of an equivalent energy discount scheme to NI.

Who will get the cost-of-living payment and when?

Last month, the Westminster Government revealed details of the scheme in which households in Great Britain would get more than £60 off their energy bills each month throughout winter as part of its cost-of-living support measures.

The money, which is part of a package announced in May this year, will be delivered in six instalments over six months to some 29 million households.

Households will see £66 taken off their energy bills in October and November, and £67 between December and March, the Government said.

But there has been uncertainty about how Northern Ireland households will receive the payment to help with energy costs.

So when will those in Northern Ireland get the cost-of-living payment?

Two Stormont ministers have indicated they are looking at a solution with Chancellor Nadhim Zahawi to deliver a £400 energy bill discount in Northern Ireland.

Communities Minister Deirdre Hargey and Economy Minister Gordon Lyons, along with the Utility Regulator, met with the Chancellor in Belfast on Wednesday.

The two Stormont ministers are looking at the Treasury paying money to energy companies in Northern Ireland to take off customers bills.

There is to be another meeting on Monday.

Pressed on whether the energy discount would be delivered in Northern Ireland, Mr Zahawi said: "I will do everything in my power to make sure that we deliver the money, and hence why I'm here, and hence why we're having these meetings.

"Of course I want to see the executive restored and we will do everything to try and get to a place where it is restored, that is the best place for the people of Northern Ireland, in my view."

What can be done to roll out the discount to Northern Ireland?

Ordinarily, the UK Treasury would have made the payment via a Barnett Consequential to Northern Ireland, as it previously did with a £200 energy loan payment scheme.

It uses the Barnett formula to calculate additional funding when there are changes to government spending affecting devolved services.

However, the Treasury said without a functioning Executive at Stormont to sign off on the money, it is considering other ways to apply the discount.

Why is there a delay getting the discount to householders in Northern Ireland?

Northern Ireland is a separately regulated energy market and the situation is further complicated because the power sharing government is not fully functioning.

Stormont has been in limbo since February when the DUP withdrew its First Minister from the power-sharing Executive in protest over Brexit's Northern Ireland Protocol.

Since elections in May, the party has blocked three bids to elect a new Speaker, meaning that no further business can be discussed.

In the absence of a functioning legislative Assembly, a decision-making executive cannot be formed.

Other Stormont ministers can remain in post, but they are unable to make major policy decisions.

How is the £400 energy discount being paid out in the rest of the UK?

All UK households will get a grant which will reduce energy bills by £400 from October.

Initially, this was designed to be a £200 reduction paid back in instalments over five years but now the discount has been doubled with no requirement to repay.

So from October, everyone's energy bill will be reduced by £400. This will be applied in monthly instalments over six months, with a reduction of £66 in October and November, and of £67 a month from December to March 2023.

The discount will be made automatically by your energy supplier so there is no need to apply.

Direct debit and credit customers will have the money credited to their account. Customers with pre-payment meters will have the money applied to their meter or paid via a voucher.

In technical terms. the grant will apply directly for households in England, Scotland, and Wales.

The Treasury is still in discussion with Stormont ministers about how to make the payment to Northern Ireland households.

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