After warnings from experts that millions of people in the UK could struggle if energy prices continue to rise, the government has announced that this October, every household in the UK will receive an energy bill discount of £400 as part of a broader package designed to help combat soaring prices.
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Additionally, eight million lowest income households will receive a payment of £650 to help with the cost of living as part of the push, which Chancellor Sunak called “significant support” for people facing “acute distress” and is just part of the collective responsibility to help those shouldering the brunt of the financial burden as a result of inflation.
Furthermore, as part of the £15bn package, eight million pensioner households are set to get £300, and six million people receiving non means-test disability benefits will get an extra £150.
Sunak stated that the relief would have a minimal impact on inflation as the cost of these measures will be partly offset by 25% windfall tax on oil and gas firms’ profits, which, as many know, have sky-rocketed in recent months.
The announcement comes on the heels of pressure for the government to do more to help with the cost of living crisis and is being applauded by experts saying the support will be immensely helpful to struggling families and those most vulnerable to rising prices.
Unfortunately, even with this financial support from the government, households will still face increased energy bills amongst other rising prices. Food, fuel, and other goods have all experienced rising prices in recent months, pushing inflation to a 40-year high.
The chancellor cited the war in Ukraine, lockdowns in China, and post-pandemic recovery for the spike in prices, but that the situation had become so serious, that the government had to step in to support its people.
If you pay via direct debit or credit, the money will be credited to your account, and if you have a pre-payment meter, the money will be applied to your meter or paid via voucher.