Chancellor Rishi Sunak announced a series of additional support measures last month to tackle the UK’s cost of living crisis.
Soaring inflation and energy prices have hit households hard, adding hundreds if not thousands to annual bills.
The Chancellor confirmed a £650 one-off payment to support the country’s most vulnerable.
He also announced the previously confirmed £200 energy bill rebate will be doubled to £400 and no longer have to be repaid.
Here’s how it will work and when you can expect the money.
What is the energy bill rebate?
The original plan, announced earlier this year, was for households to receive a £200 discount on their energy bills in October, with the Government meeting the costs.
This rebate would have been paid back over five years from 2023, with customers paying an additional £40 on their bills each year.
However, the Chancellor announced in May the discount would be increased to £400 and will no longer have to be paid back.
When will I get the money?
Energy suppliers will send the money to households with a domestic electricity meter over six months, starting from October.
Direct debit and credit customers will have the money credited to their account, while customers with pre-payment meters will have the money applied to their meter or paid via a voucher.
What other support has been announced
The Chancellor announced a £300 increase to the winter fuel payment and a £650 package for the eight million Britons who receive means-tested benefits.
The Department for Work and Pensions (DWP) will make the payment in two lump sums – the first from July, the second in the autumn.
Around six million people across the UK who receive certain disability benefits will receive a one-off payment of £150 in September.
Mr Sunak confirmed a windfall tax on oil and gas companies will be implemented to fund the additional support.
What is a windfall tax?
A windfall tax is a one-off tax that can be imposed by a government on a single company or group of companies.
It is designed to tax firms that have profited off something that they did not achieve themselves. For example, the soaring profits of Shell and BP are the result of worldwide increases to the prices of oil and gas caused by a number of factors, from reduced supply to sanctions placed on Russia over the war in Ukraine.
Ministers have spent months criticising the idea of a windfall tax because of its potential impact on investment.
But the Government has now made a U-turn. The Chancellor told MPs that oil and gas companies would be charged a temporary 25 per cent tax on windfall profits.
Mr Sunak said: “Like previous governments, including Conservative ones, we will introduce a temporary targeted energy profits levy, but we have built into the new levy… a new investment allowance similar to the super-deduction that means companies will have a new and significant incentive to reinvest their profits.
“The new levy will be charged on profits of oil and gas companies at a rate of 25 per cent.
“It will be temporary, and when oil and gas prices return to historically more normal levels, the levy will be phased out.”
He said the tax will raise £5bn in revenue.
The Prime Minister has previously said a windfall tax would “deter investment”, would be “totally ridiculous” and would “raise prices for consumers”.
However, Labour leader Sir Keir Starmer said a U-turn would be “inevitable” – and has now been proven right.
He called for a windfall tax last month, saying: “North Sea oil producers are making so much unexpected profit that they call themselves ‘a cash machine’. That cash could be used to keep energy bills down.”
The Liberal Democrats, Greens and SNP also support a windfall tax, with Lib Dem leader Sir Ed Davey saying energy companies should “pay a little more to help the most vulnerable”.