Details for £400 energy bill discount revealed

The total amount will be split into six different payments with the first due in October

Big Zero Report 2022

The government has today unveiled more details about the process that will give Britons the much-anticipated £400 energy bill rebate.

The £400 discount, administered by energy suppliers, will be paid in six instalments with payments starting from October.

Those with a domestic electricity meter point paying for their energy through 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, using the customer’s registered contact details.

These customers will need to take action to redeem these at their usual top-up point, such as their nearest local PayPoint or Post Office branch.

Ministers have stressed that no household should be asked for bank details and have urged customers to stay alert for potential scams.

However, many have raised concerns about the amount of money given to support households.

Critics say this government came at a time when analysts predicted that the price cap could rise to £2,800.

Current estimates suggest the price cap in the fourth quarter of the year could be around £3,420, jumping to £3,850 in the first quarter of 2023.

Earlier this week, MPs called on the government to update urgently its energy bill support package.

The call was followed by Rishi Sunak‘s promise to slash VAT on energy bills.

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 are providing will go some way to help millions of families over the colder months.”

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