The £400 payment, which is part of a package announced in May this year, will come in the form of a monthly deduction from bills over six months for approximately 29 million households.
Customers will see £66 taken off their energy bills in October and November and £67 each month from December to March, the Government said. However, one energy company boss has said that households could burn through that money in just a few days.
The news marks the first detail of how the Government will pay out the £400 support for all households, which the then chancellor Rishi Sunak first announced in May. Sunak also promised extra help for the poorest households.
That support came in response to predictions that energy bills will rise to £2,800 for the average household in October. Since May, however, the forecasts have become even bleaker. Consultancy BFY believes bills could hit £3,420 per year from October, rising even further in January. January’s forecast could...