How will households receive £400 energy support payment?

Millions of households will see a discount applied to fuel bills this autumn and winter amid soaring costs.

How will households receive £400 UK Government energy support payment? iStock

The Government has announced details of how households in Scotland and the rest of the UK will receive £400 to help with rising energy bills in autumn.

The money will be paid in six instalments to help families throughout winter.

Millions of households will see a discount of £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 2023.

How the money is received will depend on how you currently pay your fuel bills.

Direct Debit customers will receive the energy bill discount automatically as a deduction to their bill, whether they pay monthly or quarterly, or as a refund to their bank account following their Direct Debit payment.

Standard credit customers and payment card customers will see the energy bill discount automatically applied as a credit to their accounts in the first week of each month of the scheme, with the credit appearing as it would if the customer had made a payment.

Smart prepayment meter customers will see the discount credited directly to their meters in the first week of each month.

Traditional prepayment meter customers will be provided with redeemable energy bill discount vouchers or Special Action Messages (SAMs) in the first week of each month, issued via SMS text, email or post. Customers will need to redeem these at their usual top-up point.

“People across the country are understandably worried about the global rise in energy costs, and the pressure this is placing on everyday bills,” said business and energy secretary Kwasi Kwarteng.

“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.”

It follows the announcement that energy giants like the owner of Scottish Gas have made huge profits in the last year.

Centrica said its half-year profit soared five-fold to £1.3bn after being boosted by rocketing energy prices.

Money Saving Expert founder Martin Lewis has warned that lives will be “devastated” by a 77% rise in energy bills set to hit homes from October.

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