At least a million households that won’t receive the government’s £200 energy “loan” will still be liable to pay it back, according to new analysis from Labour.
Under Rishi Sunak‘s Energy Rebate Scheme, households will get a non-optional £200 discount this year to help with the soaring cost of energy bills.
This amount will then be paid back in £40 annual instalments for five years.
The policy has been widely criticised for being repayable, risking pushing the most vulnerable families further into debt – with the End Fuel Poverty Coalition referring to it as a “heat now, pay later” scheme.
On Friday, Labour branded the arrangement a “scam” after their analysis found more than a million Brits will be forced to pay £40 a year for the next five years – totalling £112m in revenue for the Treasury – without ever receiving the £200 discount.
Read more: Bleak Friday: Household bills to soar by £80 a month from 1 April
“This is a buy now, pay later chancellor, who is forcing this compulsory loan on people that people have to pay back then for years to come,” shadow chancellor Rachel Reeves told Yahoo News UK.
“The scam in it all is that, even if you don’t get the loan, you’re still having to pay it back.”
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