Energy bills: When will I receive the £400 energy grant?

The £400 energy grant promised by the Government will start to be handed out to households from next month, with the money being paid in instalments.

Every household in the UK is eligible for the tax-free payment, which replaces a previously-promised £200 discount.

Originally, the then-Chancellor Rishi Sunak announced every household would receive a £200 discount on their bills, to be repaid over five years, from 2023.

But after criticism over the handout - which was essentially a loan - Mr Sunak increased the discount to £400 and announced it would not have to be paid back.

The £400 payment will begin to be rolled out from October, but households will not receive the money in cash, and it will not be paid in a lump sum.

Instead, the money will be broken down into six monthly payments, and will be automatically deducted off bills for those who pay for their energy via direct debit, standing order, or payment cards.

Those who use prepayment meters will be given vouchers in the first week of each month, via either text message, email or post.

The payments will be as follows:

Who is eligible for the energy discount?

All households are eligible for the £400 payment - both homeowners and tenants - with the money being deducted from energy bills or given in voucher-form to whoever is the billpayer. Those who have energy bills included in their rent are entitled to the discount.

The Government says: “In these circumstances, landlords who resell energy to their tenants should pass the discounted payments on appropriately, in line with Ofgem rules to protect tenants.”

However, it's not yet clear how this will be enforced to ensure tenants receive the discount.

Polly Neate, chief executive of Shelter, said: “Landlords can only charge for energy used, the standing charge and VAT. So, it’s worth making a note of how much energy you’re using to make sure you’re not paying more than you should.

“It is unfair that those at the very sharp end of this crisis could miss out on this much-needed support.”

Scam warning

Unfortunately scammers are seizing on people's anxiety about their energy bills and using the Government's rebate as a way to confuse and con people to give their bank details out.

Ofgem said: “There are rising reports of text, email and phone scams impersonating energy firms.

“For example, from thieves saying your energy supply has switched and asking for your payment details.”

In one example, a scam email pretending to be from Ofgem says the energy bill discount will be paid directly into bank accounts, and to receive it victims need to visit a fake online 'Ofgem portal'.

In a scam warning, Ofgem reminded households it will never sell energy, ask for personal information, or come to a property.

Remember: The discount is being automatically applied to energy bills for those on direct debits/standing orders, and given in the form of vouchers for those on prepayment meters.

Is there other help available?

Yes, those on certain benefits are eligible for more grant funding.

More than eight million people on means-tested benefits have begun receiving the first instalment of a £650 cost of living grant.

To be eligible for the payment, a person must be on either:

The first instalment of £326 was first rolled out in July, but those on solely child tax credit or working tax credit are receiving their funds between September 2-7.

The second and final instalment, of £324, will be paid in the autumn for DWP benefit claimants, and winter for those solely in receipt of tax credits, the Daily Express explains.

The money will appear in bank accounts automatically.

The winter fuel payment for pensioners is also being boosted by £300. Again this will be paid automatically, but those who do not get benefits or a state pension, or live in Switzerland or an EEA country need to contact the winter fuel payment scheme and claim here if this is the first year they are eligible.