The Department for Business, Energy and Industrial Strategy (BEIS) set out the delivery details of the Energy Bills Support Scheme (EBSS) on 29 July 2022, confirming that the £400 discount will be paid to consumers over six months, starting in October 20221. The scheme will provide energy bill discounts to 29 million households across Great Britain1.
Households will see £66 applied to their energy bills in October and November, rising to £67 each month from December through to March 20231. The discount is non-repayable and will be provided monthly regardless of whether consumers pay monthly, quarterly or hold a payment card1. Those paying by standard credit, payment card or direct debit will receive an automatic deduction totalling £400 over the six month period1.
Payment arrangements differ by customer type. Direct debit customers receive the discount as a deduction to the monthly direct debit amount collected, or as a refund following collection1. Standard credit and payment card customers see it applied as a credit to their accounts in the first week of each month of delivery1. Smart prepayment meter customers have the discount credited directly to their meters in the first week of each month1. Traditional prepayment meter customers receive redeemable vouchers or Special Action Messages from the first week of each month, issued by SMS text, email or post, which they must redeem at their usual top-up point, such as a PayPoint or Post Office branch1.
"The £400 discount, administered by energy suppliers, will be paid to consumers over 6 months with payments starting from October 2022"
BEIS stated that no household should be asked for bank details at any point, and ministers urged consumers to stay alert to potential scams1. Where a person's housing circumstances change during the six month period, such as leaving or moving home, they will still benefit from the relevant portion of the total £400, and this also applies to students and other tenants renting properties with domestic electricity contracts from landlords where fixed energy costs are included in rental charges1. Landlords who resell energy to tenants should pass the discounted payments on appropriately, in line with Ofgem rules1.
| Customer type | How the discount is delivered |
|---|---|
| Direct debit | Deduction to monthly direct debit, or refund after collection |
| Standard credit and payment card | Credit applied to account in the first week of each month |
| Smart prepayment meter | Credited directly to the meter in the first week of each month |
| Traditional prepayment meter | Redeemable voucher or Special Action Message, issued from the first week of each month |
Further funding will be available to provide equivalent support of £400 for the 1 per cent of households not reached through the EBSS, including those without a domestic electricity meter or a direct relationship with a supplier, such as park home residents1. The scheme applies to consumers in England, Scotland and Wales; the government said it was urgently working to ensure people in Northern Ireland receive the equivalent support as soon as possible1.
Why it matters for households
The EBSS is a fixed, non-repayable reduction applied through the electricity supply relationship, not a grant paid separately. For a household, the practical effect is that the discount arrives automatically for most payment methods, but traditional prepayment customers must take action to redeem vouchers, and failure to redeem means the money is not applied1. Because the discount is spread across the winter months rather than paid as a lump sum, it reduces each bill or top-up through the period when consumption is highest, rather than providing a single credit. The scheme does not change a household's underlying tariff or standing charges, and it does not alter the unit rate paid for energy; it reduces the amount owed by £400 in total across the six months1. For households whose energy costs are included in rent, the benefit depends on the landlord passing the discount on in line with Ofgem rules1. The separate Energy Bills and Energy Independence guide sets out how bill support interacts with wider supply questions, and the Energy Bills and the Price Cap guide covers how the cap itself is set.
What happens next
The government said it will work with Ofgem and suppliers on guidance ahead of implementation from October 2022, including a full set of EBSS reporting requirements for suppliers, to be published in due course1. Suppliers will be expected to report to government on action taken to ensure the support has been passed to consumers, including notifying customers in writing that they have received the £400 discount and ensuring it is clearly shown on bills or statements1. An announcement on how and when households not reached through the EBSS can access equivalent support will be made in autumn 20221. The government also said it will consult on prices and protections for domestic consumers whose supply arrangements do not enable them to move to a tariff protected by the price cap, such as those paying for energy through all inclusive rents1.