Cost of living energy bill discount: Will renters receive £400 discount announced by Chancellor Rishi Sunak?

Here is what you need to know about the energy bill discount announced by the Chancellor this week.

Will the energy bill discount apply for renters?
Will the energy bill discount apply for renters?

Every household in the UK is to get an energy bill discount of £400, Chancellor Rishi Sunak announced as part of measures to deal with the cost-of-living crisis.

A £650 payment will be made to more than eight million low-income households who receive Universal Credit, tax credits, pension credit and other means-tested benefits.

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It comes as many struggle with rises to energy prices as a further increase is expected to hit in autumn.

A typical household energy bill is set to rise by about £800 a year in October, the energy regulator Ofgem has warned.

Who will receive the discount?

The UK Treasury has confirmed the discount will go to “whoever is paying the energy bill”.

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Renters who pay energy bills will therefore be able to see the discount on their energy statements.

However, those whose landlords pay for energy bills may want to ensure they are not being overcharged when the discount is in place.

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The treasury told The Scotsman “the whole point of the discount is to help those who are paying the energy bill”.

When and how will the payments be made?

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The discount will be taken off energy bills by energy companies after they receive the money from the government from October onwards.

Direct debit and credit customers will have the money credited to their account.

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Customers with pre-payment meters will have the money applied to their meter, or paid via a voucher.

It is understood the Government is to pass legislation to ensure the discount is removed.