Last week, Rishi Sunak announced households will receive £400 to help offset the cost of rising energy bills.
Unveiling a package of measures to help with the cost of living crisis, the Chancellor announced that the energy bills discount due to come in from October is being doubled from £200 to £400, while the requirement to pay it back will be scrapped.
This means households will receive a £400 discount on their energy bills from October. The payments will be paid directly to households across the UK by the UK Government.
READ MORE: Dates for when to expect cost of living payments including £650 energy bills help
Mr Sunak said: "We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills. We have a collective responsibility to help those who are paying the highest price for the high inflation we face.
"That is why I’m targeting this significant support to millions of the most vulnerable people in our society. I said we would stand by people and that is what this support does today. It is also right that those companies making extraordinary profits on the back of record global oil and gas prices contribute towards this."
Government advice says: "Households will not need to apply for the Scheme, and in most cases we expect electricity suppliers to apply the reduction automatically to bills from October 2022."
However, some people may miss out on the discount. This includes renters who pay "all-in", i.e have their bills included within their monthly rent. People who live in park homes and pay pitch charges may also be exempt.
Guidance on GOV.UK reads: "In these situations, any charges should then be passed onto the end user. We are exploring this issue as we continue to develop the policy and we have gathered more evidence through the consultation."
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