ChatterBank0 min ago
Loan Or Discount?
On Thursday’s Question Time, Tory MP Greg Hands called the £200 loan to offset fuel increases 'a discount', but we have to pay it back over (I think) four years...which makes it a loan surely?
Hands went onto justify it because it was “put on the price point, not the individual”.
He seemed adamant, so I wonder - perhaps he's right?
Or is it like when Johnson said that crime figures had fallen by 14% - just a statement that's the opposite of the truth?
Hands went onto justify it because it was “put on the price point, not the individual”.
He seemed adamant, so I wonder - perhaps he's right?
Or is it like when Johnson said that crime figures had fallen by 14% - just a statement that's the opposite of the truth?
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It is to be paid back over 5 years and we can't opt out. Some people will never pay it back because they die, move in to residential care or move in with somebody else and don't have their name on the bill; others who never had the loan will pay it back such as people moving in to their own home for the first time.
Are there complexities? Is the 200 given to the individual bill payer to be repaid by them or is it per property. If I move into a property & haven't had the 200 will I find myself paying an extra 40 over the next 5 years. Will it apply across all providers - if I get the 200 with provider X then change to Y will I pay it back to Y? Just musing.
If it was a loan, and you were to die, the money would have to be repaid from your estate. That doesn't apply though.
Similarly, if it were a loan and you were to move into a care home, you'd still have to repay it. You won't though.
If it were a loan, someone who starts paying fuel bills after such loans were made (e.g. a young person who moves out of their parents' house and into their own home at the end of this year) wouldn't have the 'repayments' added to their own bills. They will though.
It's a grant but one where the Government will get their money back through a levy on fuel bills later on (irrespective of whether the people paying those bills were actually those in receipt of the grants).
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Similarly, if it were a loan and you were to move into a care home, you'd still have to repay it. You won't though.
If it were a loan, someone who starts paying fuel bills after such loans were made (e.g. a young person who moves out of their parents' house and into their own home at the end of this year) wouldn't have the 'repayments' added to their own bills. They will though.
It's a grant but one where the Government will get their money back through a levy on fuel bills later on (irrespective of whether the people paying those bills were actually those in receipt of the grants).
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so i looked online, and its 2 seperate things. one thing i dont get is this;
nergy suppliers will apply the discount to domestic electricity customers from October, 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.
why give it to electricity users solely then pay it back when gas prices go down?
nergy suppliers will apply the discount to domestic electricity customers from October, 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.
why give it to electricity users solely then pay it back when gas prices go down?
The guidance states that, "The scheme will be based on electricity meter points" and "It is a grant now with a levy on future bill payers."
I understand that to mean that if two adults move to two different addresses after their parents received the £200, they could end up paying £600 in levies between the three of them.
I have just e-mailed our Tory MP to see if my understanding is correct and if so, how he justifies it.
I understand that to mean that if two adults move to two different addresses after their parents received the £200, they could end up paying £600 in levies between the three of them.
I have just e-mailed our Tory MP to see if my understanding is correct and if so, how he justifies it.
