The Chancellor Rishi Sunak has announced that he will give 8 million households £650 towards their energy bills which does not have to be paid back.
The government will provide the £650 to households which will be means tested.
Sunak said, “I know people are struggling.
“We will provide significant support to the British people.
“To help with the cost of living we are going to provide significant, targeted support.”
Sunak added, “Our policy will provide a larger average payment this year of £650 whereas uprating the same benefits by 9% would be worth only on average £530.”
This comes after Jonathan Brearley, Ofgem’s chief executive warned MPs this week that millions of people could see their energy bills rise to £2,800 this October.
Brearley told MPs, “The price changes are genuinely a once in a generation event not seen since the 1970s.”
On help for pensioners, Sunak told the House of Commons, “From the autumn we will send over eight million pensioner households who receive the winter fuel payment an extra one-off pensioner cost-of-living payment of £300.
“Disabled people also face extra costs in their day-to-day lives, like having energy-intensive equipment around the home or workplace.
“So to help the six million people who receive non-means tested disability benefits we will send them, from September, an extra one-off disability cost-of-living payment worth £150.
“Many disabled people will also receive the payment of £650 I’ve already announced, taking their total cost-of-living payments to £800.”