The Money Saving Expert breaking things down to the basics, as per
Financial advisor and TV personality
Martin Lewis has taken to TikTok in an effort to break down the government's
energy bill discount following yet another price hike.
The Money Saving Expert, who was
recently forced to apologise for branding energy regulator Ofgem "a f*****g disgrace", jumped on multiple social media platforms to give a lengthy six-minute summary of how the £400 relief package will look across various different UK households.
At the start of his video, Martin said: "It's quite a good package, and it's probably better than I expected it to be. I am breathing a sigh of relief as it will relieve some of the pressure", despite admitting that most people will soon be paying more than £1,500 a year on their energy bills compared to the rates they were paying before April following the
significant cap increase which is predicted for October.
He goes on to detail that the homes currently on Universal Credit (UC) and those that claim disabilities will receive a total of £12,000, while those on Universal Credit and other benefits excluding disability will receive approximately £950.
Elsewhere, pensioners are set to receive "£700 extra" and the most low-income homes will be given "a £650 direct payment" into their account. As for everyone outside of these parameters, it's the standard "£400 towards the costs."
Touching on the wider support Chancellor
Rishi Sunak promised, he added that "for those with non-means tested disabilities, there will be £150 given" - a payment which will be exempt from tax and separate from the pre-existing cap and will not impact any other existing benefits.
Moreover, Lewis assured that if you're eligible for both the weekly £20 Universal Credit uplift - a crucial lifeline that many families had
taken away - and the £650 discount, you should expect to receive both.
https://www.facebook.com/watch/?v=465888528365868
As alluded to above, these relief packages are expected to be handed out automatically and directly through a government payment in September, a month prior to the energy cap review.
The entire energy bill discount package is estimated to cost around £15bn and is said to effectively replace the previous
£200 loan announced back in February.
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