Energy bill support scheme: How to claim £400 discount as government reveals instalment plan

The business and energy secretary announced details amid criticism that the government isn’t doing enough to help struggling households

All households in England, Scotland and Wales will receive £400 in energy bill discounts from October, the government has announced.

The support will be issued in six instalments over six months to some 29 million households.

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.”

Business secretary Kwasi Kwarteng says the measure will help millions of families (PA)

Those with a domestic electricity meter who pay for their energy via standard credit, payment card or direct debit will receive an automatic deduction to their bills.

Prepayment meter customers will be provided with energy bill discount vouchers in the first week of each month, issued via SMS, email or post.

While no government can control global gas prices, we have a responsibility to step in where we can

Kwasi Kwarteng

Chancellor Nadhim Zahawi said the discount was “part of our £37bn of help for households, including 8 million of the most vulnerable households receiving £1,200 of direct support to help with the cost of living”.

The announcement comes after consumer champion Martin Lewis said the prime minister and the Tory leadership contenders Liz Truss and Rishi Sunak needed to agree a package to help consumers.

He said Boris Johnson’s “zombie government” was failing to address the crisis caused by rising energy bills, and warned that decisions on support cannot be delayed until Mr Johnson’s successor is in office.

Money Saving Expert’s Mr Lewis said households will start receiving notice of increased bills before the Tory leadership contest concludes, ahead of the energy price cap rising to £3,500 or more in October.

“I’ve never seen anything like this,” he said. “It’s going to throw many households into a terribly difficult financial situation that will leave them making some awful choices.

“You either have to cut prices for people or you have to put more money in their pockets, especially at the poorest level.”