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When are the £400 energy rebate and second cost-of-living payments due? | |
(7 days later) | |
Energy bills for a typical household are to be limited to £2,500 for two years, from 1 October. | |
This is in addition to a previously announced cost-of-living support package. What help can you get? | |
How much are energy bills rising under the new plan? | |
Who is getting the cost-of-living payments and when? | |
Two payments totalling £650 are being made to more than eight million low-income households who receive the following benefits: | Two payments totalling £650 are being made to more than eight million low-income households who receive the following benefits: |
Universal Credit | Universal Credit |
income-based Jobseekers Allowance | income-based Jobseekers Allowance |
income-related Employment and Support Allowance | income-related Employment and Support Allowance |
Income Support | Income Support |
working tax credit | working tax credit |
child tax credit | child tax credit |
pension credit | pension credit |
The first instalment of £326 was paid to about seven million of these people between 14 and 31 July. The payments were made automatically into bank accounts - usually marked "DWP Cost of Living". | The first instalment of £326 was paid to about seven million of these people between 14 and 31 July. The payments were made automatically into bank accounts - usually marked "DWP Cost of Living". |
The 1.1 million people who only receive tax credits, rather than any of the other benefits, have had to wait longer. | The 1.1 million people who only receive tax credits, rather than any of the other benefits, have had to wait longer. |
What the new energy plan means for you | |
Their first payment is also automatic, and was due to be paid straight into bank accounts by HM Revenue and Customs (HMRC) between 2 and 7 September. This is identified differently, with the letters CL and their National Insurance number. | |
All eight million will receive their second instalment of £324 later in the year. The first group will receive the money in the autumn, and the smaller group of 1.1 million in the winter. No exact dates have yet been confirmed. | All eight million will receive their second instalment of £324 later in the year. The first group will receive the money in the autumn, and the smaller group of 1.1 million in the winter. No exact dates have yet been confirmed. |
This video can not be played | This video can not be played |
To play this video you need to enable JavaScript in your browser. | To play this video you need to enable JavaScript in your browser. |
Worried about energy bills? The BBC's Colletta Smith tells you - in a minute - about four discounts and payments that could help | Worried about energy bills? The BBC's Colletta Smith tells you - in a minute - about four discounts and payments that could help |
Worried about energy bills? The BBC's Colletta Smith tells you - in a minute - about four discounts and payments that could help | Worried about energy bills? The BBC's Colletta Smith tells you - in a minute - about four discounts and payments that could help |
People are not eligible for these payments if they receive New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker's Allowance - unless they get Universal Credit. | People are not eligible for these payments if they receive New Style Employment and Support Allowance, contributory Employment and Support Allowance, or New Style Jobseeker's Allowance - unless they get Universal Credit. |
Anyone who thinks they are entitled to the help, but has not received it by the middle of September, should contact the office that pays their benefit or tax credits. | Anyone who thinks they are entitled to the help, but has not received it by the middle of September, should contact the office that pays their benefit or tax credits. |
Those who could miss out include the 850,000 pensioner households which the government says do not claim Pension Credit, which is a gateway to these extra payments. | Those who could miss out include the 850,000 pensioner households which the government says do not claim Pension Credit, which is a gateway to these extra payments. |
Other eligibility details are outlined here for people in England, Wales and Scotland, and here for people in Northern Ireland. | Other eligibility details are outlined here for people in England, Wales and Scotland, and here for people in Northern Ireland. |
Why are energy prices going up so much? | Why are energy prices going up so much? |
What can I do if I can't afford my energy bill? | What can I do if I can't afford my energy bill? |
What about the payment for disabled people? | What about the payment for disabled people? |
Up to six million people on the following disability benefits will receive £150 from 20 September - potentially on top of the £650 payment: | Up to six million people on the following disability benefits will receive £150 from 20 September - potentially on top of the £650 payment: |
Disability Living Allowance | Disability Living Allowance |
Personal Independence Payment | Personal Independence Payment |
Attendance Allowance | Attendance Allowance |
Scottish Disability Payments | Scottish Disability Payments |
Armed Forces Independence Payment | Armed Forces Independence Payment |
Constant Attendance Allowance | Constant Attendance Allowance |
War Pension Mobility Supplement | War Pension Mobility Supplement |
None of these cost-of-living payments affect the tax you pay, or the benefits or tax credits you receive. | None of these cost-of-living payments affect the tax you pay, or the benefits or tax credits you receive. |
Disabled need more help, charities tell Tory rivals | Disabled need more help, charities tell Tory rivals |
How will the £400 energy discount be paid? | How will the £400 energy discount be paid? |
All UK households will get a grant which will reduce energy bills by £400 from October. | All UK households will get a grant which will reduce energy bills by £400 from October. |
In other words, from October, everyone's energy bill will be cut by £400. This will be applied over six months, with a reduction of £66 in October and November, and £67 every month between December and March 2023. | In other words, from October, everyone's energy bill will be cut by £400. This will be applied over six months, with a reduction of £66 in October and November, and £67 every month between December and March 2023. |
The discount will be made automatically by energy suppliers in England, Scotland and Wales. There is no need to apply. | The discount will be made automatically by energy suppliers in England, Scotland and Wales. There is no need to apply. |
Direct debit and credit customers will have the money added to their account. Customers with pre-payment meters will have the amount applied to their meter, or receive a voucher. | Direct debit and credit customers will have the money added to their account. Customers with pre-payment meters will have the amount applied to their meter, or receive a voucher. |
Separate arrangements are being made for households in Northern Ireland, which has its own energy market, but details are not yet confirmed. | Separate arrangements are being made for households in Northern Ireland, which has its own energy market, but details are not yet confirmed. |
Is the UK doing as much on bills as other countries? | Is the UK doing as much on bills as other countries? |
What extra help will pensioners get for winter fuel bills? | What extra help will pensioners get for winter fuel bills? |
Households that receive the Winter Fuel Payment - which is worth £200-£300 and is paid to nearly all homes with at least one person of pension age - will receive an extra £300 in November or December. | Households that receive the Winter Fuel Payment - which is worth £200-£300 and is paid to nearly all homes with at least one person of pension age - will receive an extra £300 in November or December. |
That should cover nearly all pensioners across the UK. | That should cover nearly all pensioners across the UK. |
Lower-income pensioners who claim pension credit, will receive the money in addition to the £650 support for those on benefits which is mentioned above. | Lower-income pensioners who claim pension credit, will receive the money in addition to the £650 support for those on benefits which is mentioned above. |
This means a small group of pensioners with disabilities will receive a total of £1,500 when all the payments and discounts are combined. | This means a small group of pensioners with disabilities will receive a total of £1,500 when all the payments and discounts are combined. |
What payments have already been made? | What payments have already been made? |
About 80% of households are already receiving a £150 energy rebate, often through their council tax bill. | About 80% of households are already receiving a £150 energy rebate, often through their council tax bill. |
How it is paid depends whether you pay your council tax by direct debit and where you live in the UK. | How it is paid depends whether you pay your council tax by direct debit and where you live in the UK. |
Some people were given fuel vouchers through the Household Support Fund which is distributed by local councils. | Some people were given fuel vouchers through the Household Support Fund which is distributed by local councils. |
Councils had until September to make the payment, but BBC research found that more than three million households in Britain were still waiting on 1 July, including many lower-income households. | Councils had until September to make the payment, but BBC research found that more than three million households in Britain were still waiting on 1 July, including many lower-income households. |
How is the extra support being funded? | How is the extra support being funded? |
The government is not saying how much the new energy price guarantee plan will cost. However, industry analysis has suggested it could cost between £130bn and £150bn. | |
The money to cover the cost will be borrowed by the government, | |
The support package which was previously announced is being funded through a windfall tax - officially called a temporary levy - on energy companies (not your domestic supplier). It is expected to raise about £5bn over the next year. | |
Companies which extract oil and gas are making much more money than they were last year. | Companies which extract oil and gas are making much more money than they were last year. |
This is partly because demand has increased as the world emerges from Covid, and partly because of supply concerns due to Russia's invasion of Ukraine. | This is partly because demand has increased as the world emerges from Covid, and partly because of supply concerns due to Russia's invasion of Ukraine. |
Firms which generate electricity may also be taxed more in the future. | Firms which generate electricity may also be taxed more in the future. |
The levy will cover some, but not all, of the bill for the government. | |
Will the cost of living keep going up? | Will the cost of living keep going up? |
Prices are already rising at a faster rate than at any time in the last 40 years. | Prices are already rising at a faster rate than at any time in the last 40 years. |
Official forecasters say that the rate is set to accelerate. Prices are not expected to fall next year, but the rate of increase is expected to slow. | Official forecasters say that the rate is set to accelerate. Prices are not expected to fall next year, but the rate of increase is expected to slow. |
There is now two years of certainty for households, but only for six months for business. | |
The long-term outlook depends to a great extent on the war in Ukraine, and its wider impact on energy supplies from Russia. | |
Make Sense of Food Prices | Make Sense of Food Prices |
Find out why food prices are also on the rise. | Find out why food prices are also on the rise. |
Watch now on BBC iPlayer (UK only). | Watch now on BBC iPlayer (UK only). |
Why are prices rising so quickly? | Why are prices rising so quickly? |