Households across the UK will get more than £60 off their energy bills each month throughout winter, it has been confirmed. The £400, part of a package announced in May this year, will come in six instalments over six months to around 29 million households.
Bill-payers will see £66 taken off their energy bills in October and November, and £67 between December and March, as the UK Government revealed the details of its cost-of-living support. The announcement illustrates how the £400 support package revealed in May will be paid out.
The help, which also came alongside more targeted efforts for less-financially secure households, came in response to predictions that energy bills would rise to £2,800 for the average household in October. But since then the forecasts have predicted bills could hit £3,420 per year from October, before rising further in January.
The £400 payment will apply directly to households in England, Scotland and Wales. The Treasury is in still in discussion with Stormont ministers about how to make the payment to Northern Ireland households.
All households are eligible for the full £400, regardless of income or size of house.
Business and Energy Secretary Kwasi Kwarteng said: “People across the country are understandably worried about the global rise in energy costs, and the pressure this is placing on everyday bills. While no government can control global gas prices, we have a responsibility to step in where we can and this significant £400 discount on energy bills we’re providing will go some way to help millions of families over the colder months.”
Those with a domestic electricity meter point paying for their energy via standard credit, payment card and direct debit will receive an automatic deduction to their bills. Traditional prepayment meter customers will be provided with Energy Bill discount vouchers in the first week of each month, issued via SMS text, email or post.
More than four million households use pre-payment meters in the UK, according to the energy regulator Ofgem. Fewer than half - 1.9 million - are smart devices that will allow this payment to be made quickly and easily.
Charities are concerned that for the more than two million households with traditional non-smart prepayment devices - often the most vulnerable and poor in society - this energy help will be harder to access.
The announcement comes after consumer champion Martin Lewis said the Prime Minister and Tory leadership contenders Liz Truss and Rishi Sunak needed to agree a further package to help consumers. New Chancellor Nadhim Zahawi said the discount was “part of our £37 billion of help for households, including eight million of the most vulnerable households receiving £1,200 of direct support to help with the cost of living.”
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