Energy bills support scheme: Who is eligible for the £400 discount?

The discount will be will be issued in six installments over six months.
People in the UK will receive a £400 energy discount amid the cost of living crisis.
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Nuray Bulbul31 October 2022

The UK government has announced further details of how the £400 energy bills discount for households will work, ahead of the energy price cap rising to £3,500 or more in October.

The £400 discount, administered by energy suppliers, will be issued in six installments over six months to about 29 million households.

The energy grant is not to be repaid and is part of the £15bn government support package announced in May to tackle the cost-of-living crisis.

But the BBC has learned that many customers with prepayment meters have not yet redeemed vouchers to help with energy bills.

Figures from one in-store payment company revealed that only half of the expected value had been redeemed.

Who is eligible for the £400?

Every household in England, Scotland and Wales that is connected to the electricity grid is eligible for the grant.

Households can expect a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023.

The discount will be provided monthly regardless of whether consumers pay monthly, quarterly or have an associated payment card. If the consumer housing circumstances change during the six-month period, such as those moving home, they will still benefit from the discount.

If a tenant's rent includes bills, landlords are required to pass the discounted payments on appropriately, in line with Ofgem rules to protect tenants.

How to claim the £400

The government revealed those with a domestic electricity meter point paying for their energy via standard credit, payment card or direct debit will receive an automatic deduction to their bills.

Customers with a traditional prepayment meter will be provided with energy bill discount vouchers in the first week of each month. These will be issued via SMS text, email or post.

No household will be asked for bank details, ministers urge consumers to stay vigilant of potential scams. If a scam is suspected they are advised to report it to the relevant authorities.

Can I apply for further support?

The government is offering further support for households most in need. In addition to the Energy Bill discount, households can apply for a £650 one-off cost of living payment on means-tested benefits.

Those on a pension can apply for a £300 one-off pensioner cost of living payment, which will be paid alongside the Winter Fuel Payment.

Around six million people across the UK who receive certain disability benefits are eligible to apply for a £150 one-off disability cost of living payment.

A further £500 million has been given to the Household Support Fund to support vulnerable households with the cost of essentials such as food, utilities and clothing. Contact your local council to apply.

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