Millions of people will receive a £400 discount off their energy bill as part of new cost of living support announced by Rishi Sunak.
The Chancellor confirmed this will replace the hugely unpopular £200 “loan-not-a-loan” scheme, which would’ve needed to be paid back.
This original £200 has now been turned into a grant – meaning struggling households will no longer need to repay it.
Mr Sunak has also increased the amount you’ll get off your bill by an extra £200, taking the total discount to £400.
But while this support has been labelled as available to every home in England, Scotland and Wales – around 28million people – there will be some families who will miss out.
We explain how the scheme will work and who might not see the discount.
The cost of living crisis is spiralling in the UK
When will I receive the £400 discount?
The £400 discount is expected to be applied to bills from October but is spread out over six months.
This comes at the same time as the price cap is due to be reviewed again, with the boss of Ofgem warning that it could rise to £2,800.
Rishi Sunak delivering his cost of living package
Will I receive the £400 discount in a cash sum?
No, the money is applied directly to your energy bill.
Direct debit and credit customers will have the money credited to their account.
Those with pre-payment meters will have the money added to their meter or paid through vouchers.
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Will my landlord receive the £400 discount instead of me?
It depends on how you pay your energy bill.
If you’re in charge of your gas and electricity, then you’ll see the £400 added to your account.
But if your gas and electricity is included in your rent, then the money would go to your landlord, as they are in charge of paying your energy bill.
In theory, the landlord would be expected to pass on this reduction in what they charge you – but campaign groups fear this may not happen.
Energy bills are rising at an astronomical rate
Will I receive the £400 discount on a second home?
If you are in charge of paying the energy bill on a second property, then you will receive the £400 discount on this home as well.
The money is being applied against every energy bill.
Do I get the £400 discount if I live in a caravan or boat?
Most caravan owners pay a fee to the owner of the park, which includes the energy you use.
In this incidence, you wouldn’t directly receive the £400 discount as it would go to the bill payer.
For people living in boats, electricity use is normally included in your docking fee – so you also wouldn’t have the discount applied directly to you.
Again, the people or companies in charge of paying for the energy use could pass on the discount to customers – but it doesn’t mean they will.
Can I choose not to receive the £400 discount?
No, the discount is being applied automatically and you can’t opt out of it.
Will I still get the £400 if I have solar panels?
Yes, you will. Solar panels reduce your energy bills by converting the sun into power.
But it isn’t sunny all the time – meaning you do still pay for electricity that you haven’t been able to generate.
As you’re paying an energy bill, you will receive the £400 discount.