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Rishi Sunak announced today that UK households will receive a £400 energy grant to help with the cost of living crisis.
The grant will replace the £200 loan that Sunak previously promised, and will not have to be paid back.
Speaking in the Commons today, 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.”
The £400 grant is part of the Sunak’s plan to combat the cost of living crisis which includes imposing a windfall tax on energy companies.
Find out below how to get the energy grant, as well as the other grants mentioned in today’s announcement, such as the cost of living payment and the pensioner payment.
How to get the £400 energy grant
Eligible households will receive a £400 discount on their energy bills in October. This will be a grant that does not need to be repaid. The £400 grant has replaced the previously promised loan of £200.
How households will receive the £400 will depend on how they usually pay for their energy.
Households with a domestic electricity meter will receive the £400 over six months (from October) from energy suppliers.
Direct debit and credit customers will have the £400 credited to their account. People who pay with pre-payment meters will have the money applied to their meter or paid via a voucher.
This specific support will apply to households in England, Wales, and Scotland, while the government will “deliver equivalent support” to people in Northern Ireland.
The £400 energy grant is in addition to the £150 council tax rebate.
How to get the £650 cost of living payment
Eligible households will also receive a one-off £650 cost of living payment. This payment will be made in two instalments–one in July and the second in the autumn.
More than 8 million households will be eligible for this payment, which applies to people receiving the following means tested benefits: Universal Credit, Income-based Jobseekers Allowance, Income-related Employment and Support Allowance, Income Support, Working Tax Credit, Child Tax Credit, and Pension Credit.
People need to either already receive these payments or have made a claim for one of these benefits by May 25 to be eligible for the first payment. An eligibility date for the second payment is yet to be announced.
How to get the £300 pensioner cost of living payment
Eligible pensioner households will receive an extra £300 this year.
Households who receive the Winter Fuel Payment will be eligible for the £300, in addition to any other one-off support they’re entitled to. Eligible households currently receive £200-£300, so the £300 one-off payment will double the amount.
Most households will receive this payment via direct debit.
How to get the £150 disability cost of living payment
Around 6 million people will receive a £150 one-off payment in September.
People eligible for this payment include people receiving the following disability benefits: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefits, Armed Forces Independence Payment, Constant Attendance Allowance, and War Pension Mobility Supplement.
People must have already been receiving or have made a claim by May 25.
People who receive disability benefits as well as one of the previously mentioned means tested benefits will receive the £150 on top of the £650 payment.
The government will make these payments directly to households.