Millions of households will receive a £400 discount on their energy bills later this year as families continue to struggle against the cost of living crisis.
The new support was confirmed as a replacement for the £200 "loan-not-loan" that would've needed to be paid back starting from 2023.
However, the £400 discount is still half the figure of what the boss of Ofgem expects energy bills to rise by from October - meaning families still face hugely increased costs.
The price cap for those on default tariffs paying by direct debit increased by £693 from £1,277 to £1,971 last month.
Do you think £400 is enough to cover rising energy bills? Let us know your thoughts: mirror.money.saving@mirror.co.uk
Jonathan Brearley, chief executive of Ofgem, warned this could rise to £2,800 in October.
The price cap covers around 22million households and is linked to wholesale energy costs, which are going up due to global supply issues and the war in Ukraine.
When will I receive the £400 energy discount?
The £400 energy discount will be applied from October - but not in one lump sum. The money will be spread out over six months.
Rather than a cash payment, the money will be applied directly to your energy account.
Direct debit and credit customers will have the money credited to their account, while those with pre-payment meters will have the money added to their meter or paid via a voucher.
Who is eligible for the £400 energy discount?
In short, everyone who has an energy bill will receive the £400 off.
The help is being offered to everyone in England, Scotland and Wales, with similar support expected in Northern Ireland as well.
It is applied per household, not per person, so you will only receive the discount once.
There are some cases where you may not directly get the money off.
For example, if you rent and your bills are included in the money you pay your landlord, then the £400 would only be applied if your landlord passes it on in what they charge you.
In theory, the landlord would be expected to pass on this reduction in what they charge you - but there is nothing that can realistically force them to do this.
Some caravan owners and those who live in a boat will also not get the £400 energy help.
Most caravan owners pay a fee to the owner of the park, which includes the energy you use.
In this incidence, you wouldn’t directly receive the £400 discount as it would go to the bill payer.
For people living in boats, electricity use is normally included in your docking fee - so you also wouldn’t have the discount applied directly to you.
Again, the people or companies in charge of paying for the energy use could pass on the discount to customers - but it doesn’t mean they will.
