The government has released further details of the Energy Bills Support Scheme today, with households across the UK to get a £400 discount.
Currently the price cap for energy bills is set at £1,971 a year, but experts are expecting bills to reach an unprecedented £3,850 a year after Ofgem raises the price cap further in January.
Discounts will be spread out over six months, beginning in October when energy suppliers will automatically apply the price cut to homes which pay via credit, payment cards or direct debit.
Those with prepayment meters will be provided with energy Bill discount vouchers in the first week of each month which can be redeemed at their usual top-up point.
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.’
Households will receive a discount of £66 in October and November and £67 a month from December to March 2023 and will apply whether customers pay monthly, quarterly or through an associated payment card.
This is to ensure that when housing circumstances change, such as people moving home, they will still benefit from the price cuts, including students and tenants.
There are concerns from charities that the 1.9 million people with ‘non-smart’ prepayment meters will find it harder to access support, as payments won’t be made automatically.
Money saving expert Martin Lewis has been calling for urgent government action to tackle unaffordable energy prices before the next Prime Minister is formally announced.
He says Conservative contenders Rishi Sunak and Liz Truss should come to an agreement on a plan of action to tackle the crisis.
Yesterday he tweeted: ‘Just done an interview on @BBCr4today. calling for Sunak, Truss & Johnson to urgently meet (they are part of same party after all) to come up with an action plan to urgently intervene in the disastrous predicted 77% energy price cap due Oct.
‘This isn’t the time for a flaccid govt.’
Photo by KWON JUNHO