The Prime Minister announced this morning that every household in England, Scotland and Wales will receive a one-off energy support payment of £300 this autumn, ahead of a forecast rise in the energy price cap in October.
The announcement was made in a statement to the House of Commons at 11am. The Prime Minister said the payment would be made automatically to all households with a domestic energy account, with a separate scheme for those on prepayment meters. The total cost to the Treasury is estimated at £8.5 billion.
The energy price cap is forecast to rise by around 12 per cent in October, according to analysts. The cap currently stands at £1,568 per year for a typical household. An October rise would take it to approximately £1,757.
The opposition welcomed the payment but described it as "too little, too late", arguing that the government had been warned about the October rise for months and had delayed action. Energy campaigners said the flat-rate payment was poorly targeted, giving the same amount to wealthy households as to those in fuel poverty.
The Prime Minister defended the flat-rate approach, saying it was the fastest way to get money to households and that additional targeted support for the most vulnerable would be provided through the existing Warm Home Discount scheme, which is being expanded.
The payment will be made in two instalments: £200 in October and £100 in January. It will not be taxable.