From October 1, energy bills will soar for households across the UK as the new price cap hits £2,500 a year for the average household.
While the energy price guarantee as part of the Energy Bill Support Scheme freezes energy costs at this price, millions of households are still considered as this is higher than previous price caps and the cost of living is continuing to rise.
Every UK household will receive a discount on their electricity bill- as this is most commonly used- as part of the the scheme launched by the government.
But how much is the discount and how long will it be available for? Here's everything you need to know.
How much is the energy bill discount?
A £400 energy bill discount will be distributed in six instalments, with payments starting from October 1.
There will be a £66 discount applied automatically in October and November and this will then rise to £67 a month from December through to March 2023. This will not affect any other benefit or payment you receive.
If you pay via Direct Debit, this will be taken off your bill automatically or refund the money to your bank account each month.
Will those on smart prepayment meters receive the discount?
Those on smart prepayment meters will see the discount added directly to their smart meter in the first week of each month.
However, those on a traditional meter will get a voucher from their supplier via text message, email or post each month. each month. These can be redeemed at pay points.
If you pay on receipt of bill, you will have a credit added to your account in the first week of the month. You do not need to apply, or pay it back and it is automatically being issued by your energy provider.
What has the government said about energy prices?
When the Energy Bill Support Scheme was announced in July, former Business and Energy Secretary and new Chancellor of the Exchequer, Kwasi Kwarteng, said: "People across the country are understandably worried about the global rise in energy costs, and the pressure this is placing on everyday bills.
"While no government can control global gas prices, we have a responsibility to step in where we can and this significant £400 discount on energy bills we’re providing will go some way to help millions of families over the colder months."
Nadhim Zahawi, who was Chancellor of the Exchequer at the time of the announcement, added: "We know that people are struggling with rising energy prices which is why we have taken action with support over the winter months to help ease the pressure on household budgets.
"This £400 off energy bills is part of our £37 billion of help for households, including 8 million of the most vulnerable households receiving £1,200 of direct support to help with the cost of living.
"We know there are tough times ahead and we will continue to do everything in our power to help people."
