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Thursday, 26 May 2022 – All households with a domestic electricity connection will be getting a grant of £400 to help them cope with the rising energy bills.

The new support comes instead of the £200 energy discount people were due to receive from October. The £200 discount had been much-criticised and labelled as a “loan” as the money would’ve needed to be paid back.

Chancellor of the Exchequer, Rishi Sunak on Thursday May 26, confirmed he will turn the £200 “loan” into a grant; meaning struggling households will not need to repay it.

Mr Sunak will also increase the amount you’ll get off your bill by an extra £200, taking the total discount to £400.

He confirmed the new £400 payments this afternoon in the House of Commons, as part of a wider £15billion cost of living package partly funded by a new windfall tax on energy firms.

The Chancellor said;

‘The outlook for energy prices has changed. I’ve decided those repayments will be cancelled. So, for the avoidance of doubt, this support is now unambiguously a grant.

‘Furthermore, we have decided that the £200 of support for household energy bills will be doubled to £400 for everyone.

‘We are on the side of hard working families with £6 billion of financial support.’

The grant comes in the form of a council tax rebate to households. Energy suppliers will deliver the discount to households with a domestic electricity meter over six months from October.

Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.

This support will apply directly for households in England, Scotland, and Wales. Support to people in Northern Ireland is expected to be announced in due course.

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