When do we get the energy payment? How to claim the £400 payment and if you should apply

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While still in office, then-Chancellor Rishi Sunak announced a series of measures to help households across the UK handle the cost of living crisis, caused by inflation and soaring energy bills.

Some measures, such as the £650 cost of living payment, were targeted to help those who currently receive specific benefits. However, broader packages – such as the £400 energy payment – will be delivered to every household in the country.

What is the £400 energy payment?

The original plan, announced earlier this year, was for households to receive a £200 discount on their energy bills in October, with the Government meeting the costs.

This rebate would have been paid back over five years from 2023, with customers paying an additional £40 on their bills each year.

However, in late May – and after much criticism, Mr Sunak announced the discount will be increased to £400, and will no longer have to be paid back.

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Who is eligible for the £400 payment?

All households in England, Scotland and Wales will receive the £400 payment to help offset the soaring increase in energy bills from October.

Every household with a domestic electricity connection will be automatically eligible for the grant.

Should I apply for the payment?

Energy suppliers will send the money to households with a domestic electricity meter over six months, starting from October.

Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.

What else did Rishi Sunak announce?

The £650 payment was one of a series of measures announced by the then-Chancellor.

Windfall tax

Although Mr Sunak did not use the word “windfall”, having spent months opposing the move, he did announce a “energy profits levy” to raise around £5bn in a year.

This temporary one-off tax will hit oil and gas firms by 25 per cent on extraordinary profits, which have surged because of the invasion of Ukraine and the coronavirus pandemic.

An 80 per cent investment allowance was also announced in order to calm Conservative Party nerves that the move will dent North Sea firms’ investment to save them 91p for every £1 they spend.

£650 means tested payment

Mr Sunak also announced a one-off £650 payment designed to help some of the UK’s most vulnerable people.

According to the Government’s guidance, the £650 payment will be given to more than eight million households receiving the following means tested benefits:

  • Universal credit
  • Income-based jobseekers allowance
  • Income-related employment and support allowance
  • Income support
  • Working tax credit
  • Child tax credit
  • Pension credit

Targeted measures

Separate one-off payments of £300 will also go to pensioners and £150 for those receiving disability benefits.

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