How can I claim my £400 government grant? Will I have to pay back the energy bill government grant?

On Thursday, May 26, Rishi Sunak revealed that households will receive a £400 discount on their energy bills from October.

The new Cost of Living Support package will mean that almost all of the eight million most vulnerable households will receive at least £1,200 of extra support this year, in addition to the £150 council tax rebate that many families have received in April - which is equivalent to the average energy price cap rise across the year.

The Chancellor of the Exchequer, Rishi Sunak, said: “We know that people are facing challenges with the cost of living and that is why today I’m stepping in with further support to help with rising energy bills.

“We have a collective responsibility to help those who are paying the highest price for the high inflation we face. That is why I’m targeting this significant support to millions of the most vulnerable people in our society. I said we would stand by people and that is what this support does today.

“It is also right that those companies making extraordinary profits on the back of record global oil and gas prices contribute towards this. That is why I’m introducing a temporary Energy Profits Levy to help pay for this unprecedented support in a way that promotes investment.”

Here is everything you need to know about the £400 Energy Bills Support Scheme.

How can I claim my £400 energy bill grant?

Households will get £400 of support along with their energy bills through an extension of the Energy Bills Support Scheme.

The full £400 payment will now be made as a grant, which will not be recovered through higher bills over future years.

You will be receiving this grant from energy suppliers through a domestic electricity meter over six months from October 2022.

Direct debit and credit customers will have the money credited to their account, while customers with prepayment meters will have the money applied to their meter or paid by using a voucher.

This support will apply directly for households in England, Scotland and Wales and the government will deliver equivalent support to people in Northern Ireland.

The financial support will also be in addition to the £150 Council Tax rebate for households in England in Council Tax bands A to D. This was announced in February.

Will I have to pay back this energy bill government grant?

Unlike the previous discount of £200 for which households were expected to pay back over time by 2023, the requirement to pay back the newly doubled grant has been scrapped.

Households will no longer have to pay back the grant.

For more information on the government’s Cost of Living Support, visit the Treasury website.

You can also visit the Trussell Trust website if you wish to donate to those in need.