Government confirms £600 single payment for Northern Ireland households and £200 Alternative Fuel Payment for Great Britain

The UK government confirmed on 19 December 2022 that every household in Northern Ireland will receive a single, one-off payment of £600 to help with energy bills, with payments starting in January 2023¹. The same announcement set out a £200 Alternative Fuel Payment (AFP) for households in Great Britain that use alternative fuels such as heating oil or biomass, and a £400 payment for households in England, Scotland and Wales without a direct relationship to an energy supplier¹.

The Northern Ireland payment is made up of £400 under the Energy Bills Support Scheme Northern Ireland (EBSS NI) and £200 under the AFP, which goes to all households in Northern Ireland irrespective of how they heat their home¹. The government said it will fund electricity companies for the payment so it can be administered quickly, and that most Northern Ireland consumers will receive the full amount before households in Great Britain while receiving the same level of support this winter¹. Customers who pay by Direct Debit will receive the £600 into their bank account directly; other customers will be sent a voucher to redeem the payment¹.

On 30 December 2022 the government set out how around 500,000 households in Northern Ireland without a direct debit arrangement will be paid, with vouchers starting to be issued from mid-January². Standard credit customers and prepayment (keypad) meter customers will receive a voucher from their supplier, redeemable at a Post Office with relevant ID and documentation². Vouchers will be valid until 31 March 2023, and proof of address must be dated before 2 January 2023². No application is necessary, and suppliers will issue vouchers automatically².

"We are determined to ensure that whatever their circumstances, every customer in Northern Ireland gets the support they are entitled to."

For Great Britain, most households eligible for the AFP will receive payment automatically via their electricity supplier in February, with no need to take any action¹. Those who cannot receive it automatically, for example because they do not have a relationship with an electricity supplier, will be able to apply in February through the same GOV.UK portal used for the EBSS Alternative Funding scheme¹. UKIFDA, the trade body for the fuel distribution industry, stated that the AFP will be made in January 2023 for customers in Northern Ireland and February 2023 in Great Britain, paid via electricity suppliers alongside the Energy Bills Support Scheme payments³.

The EBSS Alternative Funding gives £400 of non-repayable help to households in England, Scotland and Wales without a direct relationship to a domestic energy supplier, estimated at over 900,000 households¹. Online applications open in January, alongside a helpline for those without online access, and payments will be made by local authorities¹. Customers eligible for support under the main Energy Bills Support Scheme are not eligible for EBSS Alternative Funding¹. Which? reported that the portal and phoneline would launch in January⁴.

Why it matters for households

For homes in Northern Ireland, the energy market works differently from Great Britain, and the £600 arrives as one payment rather than in monthly instalments. That means the full amount lands at once, which matters for households managing a prepayment meter or buying heating oil in bulk. Around 68% of households in Northern Ireland rely on alternative fuels to heat their homes, according to the government¹. Households that pay by Direct Debit receive the money without action; those on vouchers must redeem them at a Post Office before 31 March 2023².

For Great Britain, the £200 AFP recognises that homes off the gas grid face different costs from those on mains gas, and most will see it applied automatically through their electricity account¹. Households without any direct supplier relationship, including care home residents, park home residents and some tenants, must apply for the £400 instead¹. The government also said the Energy Price Guarantee will save a typical Great Britain household around £900 this winter, and around £550 for Northern Ireland households using gas and electricity¹. The 30 December statement put the Energy Price Guarantee saving so far at around £65 for each Northern Ireland household using electricity and a further £75 for those using gas².

What happens next

Northern Ireland payments start in January 2023, with vouchers issued from mid-January and valid until 31 March 2023¹. The Minister for Energy and Climate has written to Northern Ireland energy suppliers urging them to suspend all debt recovery and enforcement activity until the end of January, and to provide payment holidays until the end of January where customers are struggling to pay¹. In Great Britain, the AFP is paid automatically in February, and the GOV.UK application portal for EBSS Alternative Funding and for AFP exceptions opens in January¹. The government has not reported exact payment dates for individual households, which will depend on when applications are made and processed by local authorities¹.

Sources4 cited

1. Vital help with energy bills on the way for millions more homes across Great Britain and Northern Ireland - GOV.UK, gov.uk
2. Northern Ireland households to receive voucher support for energy bills starting in January - GOV.UK, gov.uk
3. Statement: The government confirms Alternative Fuel Payment dates for domestic customers - UKIFDA, ukifda.org
4. Here's how you'll get cost of living payments in Northern Ireland and off-grid homes - Which?, which.co.uk