When will the £400 energy rebate and other living expenses payments be due?

Kevin Peach
Personal Finance Reporter, BBC News

woman kettleImage Source, Getty Images

All UK households will get £400 off their energy bills from October.

From the beginning of the month, the price of energy for a typical household has risen to £2,500.

How will the £400 energy discount be paid for?

Discounts will be automatically provided by energy suppliers in England, Scotland and Wales. There is no need to apply.

Direct debit and credit customers add money to their account. Customers using a prepaid meter will have the amount applied to their meter or receive a voucher.

Anyone not using gas and electricity – such as those using heating oil – will get an extra £100 on top of £400.

Who is getting other living expenses paid?

Two payments totalling £650 were also made to more than 8 million low-income families receiving the following benefits:

  • Universal Credit
  • Income-based Jobseeker’s Allowance
  • Income-related employment and support allowances
  • income support
  • working tax credit
  • Child Tax Credit
  • pension credit

A first installment of £326 was made to some 7 million of them between 14 and 31 July. Money is automatically deposited into a bank account – usually labeled “DWP Cost of Living”.

The 1.1 million people who received only tax credits and no other benefits had to wait longer.

Their first payment is also automatic and made between 2 and 7 September by HMRC directly to a bank account. This is determined by the letters CL and their national insurance number.

All eight million will receive their second instalment of £324 later this year. The first group gets paid in the fall, and the 1.1 million group gets paid in the winter.

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If people receive the New Employment and Support Allowance​​, Contributory Employment and Support Allowance​​ or the New Jobseeker’s Allowance, they are not eligible for these payments – unless they have Universal Credit.

Anyone who thinks they are entitled to help but has not yet should contact the office that paid their benefit or tax credit.

Those who may miss out include 850,000 pensioner households, which the government says are not required to receive pension credits, the route to these additional payments.

None of these cost-of-living payments will affect the taxes you pay, or the benefits or tax credits you receive.

What help do people with disabilities get?

  • Disability Living Allowance
  • Individual independent payment
  • Attendance allowance
  • Disability payments in Scotland
  • Armed Forces Independent Payments
  • Continuous Attendance Allowance
  • War Pension Liquidity Supplement

What extra help will pensioners get?

Families receiving the winter fuel subsidy – worth £200-£300, with almost all households of at least one retirement age receiving the subsidy – will receive an extra £300 in November or December.

This should cover almost all pensioners in the UK.

Low-income pensioners who apply for the Pension Credit will receive the money, in addition to the £650 support for those on benefit.

This means a small group of disability pensioners will receive a total of £1,500.

Image Source, Getty Images

What other payments were made?

Around 80% of households should have received a £150 energy rebate, usually through their council tax bill.

How you pay depends on whether you pay council tax by direct debit and where you live in the UK.

Some received fuel vouchers through a family support fund distributed by local councils.

What else has the government done to address energy prices?

It’s not a cap on how much you’ll actually pay – your bill depends on the amount of energy you’re actually using.

The scheme is available to all families in England, Scotland and Wales, with “the same level of support” available in Northern Ireland.

How is the additional support funded?

The government says its energy support for homes and businesses will cost £60bn over six months. That’s well below some industry analysts’ forecasts. And since the help lasts two years, the actual cost will be higher.

The final bill will also depend on what energy companies have to pay producers in the coming months.

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