Every UK household is set to receive a £400 energy bill rebate as part of plans to tackle the cost of living crisis.
Rishi Sunak confirmed the payment this afternoon, explaining that the new support will replace the original heavily-criticised £200 energy discount people were set to receive in October.
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The £200 discount had been labelled as a 'loan' (with concerns raised by the likes of Money Saving Expert Martin Lewis) as households were required to pay the money back.
The Chancellor today confirmed he will turn the £200 “loan” into a grant - meaning struggling households will not need to repay it.
Mr Sunak will also increase the amount you’ll get off your bill by an extra £200, taking the total discount to £400.
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How the £400 payment will work explained
The new £400 payment won't have to be paid back and will still be available to every UK household.
Rather than a cash payment, the money will be applied directly to your energy account.
Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
Energy suppliers will this support to households with a domestic electricity meter over six months from October.
This support will apply directly for households in England, Scotland, and Wales.
