Britain is going through a cost of living crisis and the Government has promised to provide more help with rising energy bills. Measures announced by the Chancellor last month will see a temporary energy profits levy of 25 per cent on oil and gas companies and £400 paid to every household.
When will I receive £400 to help with energy bills?
The new levy is expected to raise around £5 billion over the next 12 months and be used to help with the cost of living crisis without increasing the national debt.
Mr Sunak announced in Parliament that every household in the UK will be given £400 this autumn to help with fuel costs.
The Government confirmed the payments will begin from October but no specific date was provided.
The money will be given as a grant rather than a rebate so it will not need to be repaid and it will come through energy suppliers.
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Who else will receive support?
As well as supporting every household in the country, the Government also revealed a plan to help the most vulnerable.
The Chancellor promised a payment of £650 to 8 million of the lowest income households who receive means-tested benefits such as Universal Credit.
This will be provided in two payments, the first is expected to be made in July with a second later in autumn.
The payment is intended to help those who are unemployed or people with a disability who are unable to work.
Why are energy bills increasing?
Partly due to the energy price cap – the maximum a utility company can charge an average customer in the UK per year for electricity and gas.
The cap increased from £1,277 to £1,971 per year in April which meant companies were able to charge customers a lot more than previous years.
The 54 per cent hike shot up due to a global surge in energy prices as demand spiked.
During his speech announcing the support in Parliament last month, Mr Sunak explained that he hoped the measures would ease some of the suffering British families are going through.
He said: “I am not trying to claim we have solved the entire problem for everyone, no government could.
“But I hope that when people hear the significant steps we are taking, the millions we are helping, they will feel some of the burden eased.”
The energy price cap is expected to increase again in October.
