Millions of households are set to receive a £400 energy bill discount from Saturday in a bid to help families with rising costs this winter.
The money will be paid in six instalments, with a discount of £66 applied to energy bills in October and November, rising to £67 each month from December through to March 2023.
The Energy Bills Support Scheme was launched by the government in July in an effort to help families throughout winter.
How will you receive the payment?
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.
Smart prepayment meter customers will see the discount credited directly to their meters in the first week of each month.
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.
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.
What is the energy price guarantee?
It comes after Prime Minister Liz Truss confirmed that energy unity prices were to be frozen meaning a typical household bill would be £2,500 a year.
The freeze will apply for the next two years from October 1 under a new Energy Price Guarantee, in a move that is aimed at protecting the UK from soaring energy bills.
READ MORE: Why your energy bill can still be more than £2,500 despite price cap
The typical household gas and electricity bill had been expected to rise to more than £3,500 in October.
Campaigners have warned of the risk to lives this winter due to soaring energy costs.
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’re providing will go some way to help millions of families over the colder months.”