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When are the £400 energy rebate and other cost-of-living payments due? | When are the £400 energy rebate and other cost-of-living payments due? |
(8 days later) | |
All UK households will be given a £400 discount on their energy bills from October. | |
It comes as energy prices for a typical household rise to £2,500 from the start of the month. | |
Why you should take a meter reading | |
How will the £400 energy discount be paid? | |
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. | |
Customers have been warned to ignore scam emails and texts asking for personal information in order to receive the discount. | |
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. | |
Anyone who doesn't use mains gas and electricity - such as those using heating oil - will receive an extra £100 on top of the £400. | |
Who is getting other cost-of-living payments? | |
Two payments totalling £650 are also being made to more than eight million low-income households who receive the following benefits: | Two payments totalling £650 are also 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, had to wait longer. | The 1.1 million people who only receive tax credits, rather than any of the other benefits, had to wait longer. |
Their first payment was also automatic, and was paid straight into bank accounts by HM Revenue and Customs (HMRC) between 2 and 7 September. This was identified by 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 group of 1.1 million in the winter. | |
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 who haven't received it 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. |
None of these cost-of-living payments affect the tax you pay, or the benefits or tax credits you receive. | |
What help are disabled people getting? | |
Up to six million people on the following disability benefits started to receive £150 on 20 September: | |
Disability Living Allowance | |
Personal Independence Payment | |
Attendance Allowance | |
Scottish Disability Payments | |
Armed Forces Independence Payment | |
Constant Attendance Allowance | |
War Pension Mobility Supplement | |
Disabled need more help, charities tell Tory rivals | |
What extra help will pensioners get? | |
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. | |
This means a small group of pensioners with disabilities will receive a total of £1,500. | |
What other payments have 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. |
What else is the government doing to tackle energy prices? | |
The government has announced a two-year energy price guarantee, limiting a typical duel-fuel household's annual energy bill to £2,500. | |
This is not a cap on how much you will actually pay - your bill depends on how much energy you actually use. | |
The plan applies to all households in England, Scotland and Wales, with the "same level of support" available in Northern Ireland. | |
The government has also announced a support package to cut energy bills for businesses, for six months from the start of October. | |
What help are households and businesses getting with their energy bills? | |
How is the extra support being funded? | How is the extra support being funded? |
The £400 discount and payments for pensioners and people on certain benefits are being funded through a windfall tax on energy companies. | |
The government said its energy support for households and businesses will cost £60bn for the six months. That is much less than some industry analysts predicted. And because the help will last for two years, the actual cost will be higher. | |
It will be paid for through increased government borrowing. The cost of this has increased sharply since its mini-budget plunged financial markets into chaos. | |
The final bill will also depend on the price energy companies have to pay producers in the coming months. | |