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Addressing the House of Commons to speak about the cost of living crisis on Thursday, the chancellor delivered a series of measures to help struggling households.
This includes every household in the UK receiving £400 off their energy bills in October, following news that bills will once again rise by as much as 40 per cent, taking the average bill to more than £2,800 per year.
Explaining the £400 grant, Money Saving Expert Martin Lewis discussed the details on Twitter.
Instead of the repayable £200 previously announced by the government, families will be given a non-repayable sum of up to £400.
"Many still confused about the £200 loan-not-loan. It has gone. Now in October all energy bills will be reduced by a flat £400. This is not repayable. This is a grant. Every household that gets an energy bill will get it."
Many still confused about the £200 loan-not-loan. It has gone. Now in October all energy bills will be reduced by a flat £400. This is not repayable. This is a grant. Every household that gets an energy bill will get it.— Martin Lewis (@MartinSLewis) May 26, 2022
(we need to see if it'll be a DD reduction or a credit)
The chancellor also announced a series of other grants for low income households and those with disabilities.
Breaking down the key announcements, Martin explained that low income households could receive £950 while those who also have disabilities could expect to receive £1,100.
Pensioners are also being given £700 to help with the crisis while those in council bands A to D will receive a payment of £150.
"The vast majority of households will receive £550," said Sunak.
"We will turn this moment of difficulty into a springboard for economic renewal or growth.
"We are going to provide significant targeted support to millions of the most vulnerable in society, pensioners and disabled people."
Over a year a typical energy bill'll rise £1,500/yr. New help today (need to see t&cs)— Martin Lewis (@MartinSLewis) May 26, 2022
-Low income homes w/disabilities £1,100
-Low income homes £950
-Pensioner homes £700
-All homes £400
Plus £150 council tax for band A-D.
Initially seems bigger than I expected. Glad to see
Brits have been hit hard by soaring energy, fuel and food costs over the last few months. In January, it was reported that the proportion of British households struggling to pay their energy bills would triple by April, according to the Resolution Foundation.
From April, Ofgem's price cap rose from £1,277 to £1,971, meaning the average household bill could increase by around £693 per year.
Predicting that inflation will peak at 10% in the autumn - which is a record high - the Bank believes energy bills will once again rise in October by as much as 40 per cent, taking the average bill to more than £2,800 per year.
Featured Image Credit: PA
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