29m UK households to get £400 in instalments between October and March to help with energy bills
As millions worry about the prospect of eye-watering energy bills this winter, the government has revealed how its £400 discount will be implemented.
29m households will receive a non-repayable sum of at least £400 over the course of six months as part of the Energy Bills Support Scheme.
The initiative, which will be administered by energy companies, will take place through an automatic deducting in bills for anyone paying by standard card or debit.
Those using a prepayment metre will be given discount vouchers in the first week of each month, and be sent a text, email or notice in the post with details. They will then need to redeem the voucher at a PayPoint or Post Office.
This comes after it was reported annual energy bills could top £4,000 amid anger at record profits for both Shell and Centrica, which owns British Gas.
Households will receive £66 taken off their bills in October and £67 from December through to March next year.
The government also urged vigilance against possible scams, saying nobody should be asked for bank details at any point.
Chancellor of the Exchequer, Nadhim Zahawi, said: “This £400 off energy bills is part of our £37 billion of help for households, including 8 million of the most vulnerable households receiving £1,200 of direct support to help with the cost of living.
“We know there are tough times ahead and we will continue to do everything in our power to help people.
Business and Energy Secretary Kwasi Kwarteng said: “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.
Greg Hands, Energy Minister said discounts will “help 29 million households” as he urged “families across the country to engage with these plans and particularly those customers on traditional prepayment meters who need to take action.”