Every household in the UK is to get a discount of £400 this October as part of a package of new measures to tackle soaring energy prices.
This follows warnings that millions of households would be left struggling if energy prices continue to rise again in October as expected.
Chancellor Rishi Sunak said he will offer “Significant Support” for households facing “acute distress”. This includes offering the poorest households a payment of £650 to help with the cost of living.
The cost to make this happen will be partly offset by a 25% windfall tax on oil and gas firms’ profits, which have soared in recent months.
The chancellor also announced :
- Eight million households on means-tested benefits will get £650 paid directly to their bank accounts in two payments – one in July and the other this autumn.
- There will be separate one-off payments to pensioner households valued at £300 and £150 to individuals receiving disability benefits.
Earlier this week, UK energy regulator Ofgem said the typical household energy bill is set to rise by £800 in October, bringing it to £2,800 a year. Bills had already risen by £700 on average in April.
Due to this households will still face an overall rise in bills even with the government support.
Over the course of six months from October, direct debit and credit customers will have the money credited to their account. Customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
