Over 29 million households are eligible for the £400 discount. 1 The £400 energy bill discount will be spread over six payments. The discount was originally announced in May by former chancellor Rishi Sunak, but the money will not start arriving until October. It is up to the energy companies to administer and distribute the rebate directly to their customers. The discount will be automatic and will be made in six installments. The country’s biggest energy supplier, British Gas, has now revealed exactly how its direct debit customers will get the discount. These customers are expected to pay their bills as normal – they will receive the £400 discount as six direct payments into their bank account over a six-month period. In an email widely shared on social media, British Gas said: “For Direct Debit customers, we will send the discount straight to your bank each month – as a refund – once the Direct Debit is complete. “For example, if the fixed charge is £100 a month, you would pay as normal. Then, a few days later, £67 would be paid into your bank account. “If your fixed charge is less than £67 a month, say £50 for example, £50 will be returned to your bank account and the remaining £17 will be applied to your energy bill.”
EDF also confirmed that customers paying by direct debit will be refunded the discount once the bill has been successfully paid. However, Shell Energy customers will see the six discounts deducted from their bills before they are directly charged. For example, if your monthly fixed charge amount is £100, Shell Energy will deduct £66 in October and November and then £67 from December to March. This means your flat rate will be £34 in October and November, then £33 for the remaining four months. The Department for Business, Energy and Industrial Strategy has confirmed that payments will start to be made in October. Energy suppliers have been ordered to pay households the discount in six installments. This means households will get £66 off their energy bills in October and November, rising to £67 every month from December to March 2023. But with the energy price cap reaching £5,300 – up from around £442 a month next year – a single payment worth less than £70 a month will hardly touch the edges.

I have a standard electricity meter, how do I get paid?

Direct debit customers will receive their energy bill discount in one of two ways. Either you’ll get an automatic deduction from your monthly Direct Debit or you’ll get a refund to your bank account AFTER your Direct Debit is received each month – that’s what British Gas and EDF do. If you pay by credit (meaning you receive a bill and then make a payment), the discount will automatically be applied as a credit to your bill the first week of each month.

I’m on a prepaid meter, how do I get the discount?

If you use a prepaid smart meter, the discount will be credited directly to your meter in the first week of each delivery month – you won’t have to do anything. If you use a traditional prepaid meter, you will receive a redeemable energy bill discount voucher or a special action message (SAM) in the first week of each month, issued via SMS, email or post. Customers will then have to redeem them at the usual top-up point.

I don’t have a direct relationship with an energy provider?

The Government has today confirmed that further funding will be available to provide the equivalent of £400 of energy bill support for the 1% of households who will not be covered through the Energy Bill Support scheme. This includes those who do not have a home electricity meter or direct connection to an energy supplier, such as residents of park homes. An announcement detailing how and when these households across Great Britain can access this support will be made this autumn.

Is there any other help with energy bills?

Although there’s nothing you can do to avoid rising energy prices – energy suppliers offer support to those struggling to pay their bills. For example, there are many energy grants and schemes open to help if you’re struggling, such as British Gas’ hardship fund which can lend you up to £1,500 in free cash for bills. Ask your supplier what is on offer and how to apply or check here: There is also a one-off fuel voucher from your energy supplier if you are on a prepaid meter. If you don’t know who your supplier is, you can find out here. Anyone on the state pension should also receive £100 worth of winter fuel payments. Winter fuel payments are a tax-free payment from the government each year and range between £100 and £300. Councils offer residents cash support through the Family Support Fund and Discretionary Fund scheme.