All households in England, Scotland and Wales will receive £400 off their energy bill from October Government has announced.
The support will be provided in six installments over six months to some 29 million households.
Company and Energy Secretary Quasi Quarteng said: “People Across the country, there are understandably worried about the global rise in energy costs and the strain it is putting on day-to-day bills.
“While no government can control global gas prices, we have a responsibility to intervene where we can and this significant £400 rebate on energy bills we are offering will be one way to help millions of families during the colder months. “
Those with a household electricity meter who pay for their energy via standard credit, debit card and direct debit will receive an automatic debit on their account.
Customers with a traditional prepayment meter will receive 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 intervene where we can and this significant £400 rebate on energy bills we are offering will go a long way to helping millions of families during the colder months.
Chancellor Nadhim Zahawi said the cut was “part of our £37 billion in aid to households, including 8 million of the most vulnerable households who received £1,200 direct aid to help with living costs”.
The announcement comes after Consumer Champion Martin Lewis said Prime Minister and Tory leaders, Liz Truss and Rishi Sunak, should agree a package to help consumers.
He said Boris Johnson’s ‘zombie government’ has failed to address the crisis caused by rising energy bills and warned aid decisions cannot be delayed until Mr Johnson’s successor is in office.
Money-saving expert Mr Lewis said households will receive notice of increased bills before the Tory leadership contest ends, before the energy price cap rises to £3,500 or more in October.