£400 energy bill help will be paid monthly, Government reveals

The support will be issued in six instalments over six months to some 29 million households.

29 July 2022

Households in Great Britain will get more than £60 off their energy bills each month throughout winter, as the Government revealed the details of its cost-of-living support.

The money, which is part of a package announced in May this year will come in six instalments over six months to some 29 million households.

Households will see £66 taken off their energy bills in October and November, and £67 between December and March, the Government said.

The news marks the first detail of how the £400 pound support that then Chancellor announced in May to help people through the cost of living crisis will be paid out.

The support, which also came alongside more targeted efforts for the worst off 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 got even bleaker, consultancy BFY believes bills could hit £3,420 per year from October, before rising further in January.

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.

Chancellor Nadhim Zahawi said the discount was “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”.

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 package to help consumers.

He said Boris Johnson’s “zombie government” was failing to address the crisis caused by rising energy bills and warned decisions on support cannot be delayed until Mr Johnson’s successor is in office.

Money Saving Expert’s Mr Lewis said households will start receiving notice of increased bills before the Tory leadership contest concludes, ahead of the energy price cap rising to £3,500 or more in October.

News

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