This blog was written in July 2022. The £400 Energy Bills Support Scheme payments ended in March 2023 for most households. If you’re looking for more financial support, read more here.
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In September 2022, the UK Government announced the October price cap would not go ahead as planned.
Instead, typical households in England, Scotland and Wales will now pay up to an average of £2,500 a year on their energy bills until June 2023. From 1 July 2023, energy prices will go back to being set by Ofgem’s price cap.
The UK Government has said households in Great Britain will still get the planned £400 discount on their electricity bills. This is as part of a package of support to help people deal with rising energy costs. The grant is known as the Energy Bills Support Scheme and it will not need to be repaid.
Here’s everything you need to know about how it will work.
Every household with a domestic connection to the electricity grid in England, Scotland and Wales is eligible for the £400 discount.
The UK Government is working to make sure that people in Northern Ireland receive the equivalent support as soon as possible.
You don’t need to apply for the discount. It will be paid out by electricity suppliers to consumers over six months, with the first payments starting in October 2022.
In October and November, households will get a discount of £66 per month on their energy bills. This will change to £67 each month from December through to March 2023.
Every household will get the discount each month, regardless of how you pay for your energy (ie by direct debit or pre-payment meter).
No, you don’t need to contact your supplier, as all households with a domestic electricity connection will be automatically given the discount.
However, if you haven’t received the first instalment by the end of October 2022, you should get in touch with your energy supplier.
You will never be asked for your bank details.
You can find more details below about how the discount will be paid to you, depending on how you currently pay for your energy.
The £400 is a grant, not a loan, so will not need to be repaid.
The government estimates that around 1% of households in the UK are ineligible to receive the £400 discount, as they don’t have a domestic electricity meter or a direct relationship with an electricity supplier.
Further funding will be available to provide equivalent support for these households. Details of how and when they can access support will be announced later this year.
Households will get the discount every month, regardless of their supplier, payment method or tariff.
If you switch payment methods during the period, or if your energy supplier goes bust, you won’t be penalised.
All energy suppliers will apply the £400 reduction to bills from October. It won’t matter if you switch supplier.
The discount will be provided through six monthly payments based on six dates across the period. This means that new eligible households will benefit from the relevant portion of the total £400, as there are multiple qualifying dates to base the payments on.
While the £400 discount will help cover some of the increase, we know that many people will struggle to pay their energy bills given the steep price rises.
Our top tips could help you save up to £564 a year on your bills and there’s additional help available, wherever you are in the UK.
England
In England, visit the UK Government website to find out if you’re eligible for financial support, including the Warm Homes Discount, Cold Weather Payment or Winter Fuel Payment.
Wales
In Wales, please call the Nest scheme on 0808 808 2244 or visit the Welsh Government’s Nest website.
Scotland
If you live in Scotland, please get in touch with Home Energy Scotland online or by calling 0808 808 2282.
Northern Ireland
The Northern Ireland Sustainable Energy Programme can help eligible households install energy efficiency measures. You could also be eligible for the Affordable Warmth scheme.
All households with a domestic electricity connection will automatically get the £400 discount in monthly instalments from October.
The government has not offered an opt-out option and has said that it’s up to individual households to decide if they don’t want to keep the £400. It’s up to individuals to decide whether they’d prefer to donate the discount to charity.
Follow our 10 quick tips for straightforward ways to save energy, lower your bills and reduce your carbon footprint.
Every home should be warm and safe, but for many households across the UK, the reality is very different.
Whether you want support to make energy saving changes or are interested in incentives for using renewable energy, there is financial assistance…
Last updated: 14 June 2023
