A grant of £400 will assist struggling households deal with the vitality payments disaster.
Beforehand, a £200 mortgage in place for UK households was anticipated to be paid again.
Rishi Sunak introduced at the moment this is able to not be the case, and elevated its sum to £400.
All households with a home electrical energy connection shall be routinely eligible for the grant.
Mr Sunak mentioned: ‘The outlook for vitality costs has modified. I’ve determined these repayments shall be cancelled. So, for the avoidance of doubt, this help is now unambiguously a grant.
‘Moreover, we’ve got determined that the £200 of help for family vitality payments shall be doubled to £400 for everybody.’
He informed the Commons: ‘We’re on the aspect of onerous working households with £6 billion of monetary help.’
The grant comes within the type of a council tax rebate to households.
Vitality suppliers will ship the low cost to households with a home electrical energy meter over six months from October.

Direct debit and credit score clients may have the cash credited to their account, whereas clients with pre-payment meters may have the cash utilized to their meter or paid by way of a voucher.
Cash saving knowledgeable Martin Lewis has been tweeting in regards to the authorities’s bulletins at the moment.
He wrote: ‘Many nonetheless confused in regards to the £200 loan-not-loan. It has gone. Now in October all vitality payments shall be decreased by a flat £400.
‘This isn’t repayable. This can be a grant. Each family that will get an vitality invoice will get it.’


In the meantime, the Treasury is to send a one-off payment of £650 to eight million of the lowest income households within the UK.
The Chancellor informed MPs: ‘We have to make it possible for for these whom the wrestle is simply too onerous and for whom the dangers are too nice they’re supported.’
These eligible on Common Credit score and different advantages will obtain the cost routinely.
Ben Harrison, director of the Work Basis at Lancaster College, mentioned: ‘The one-off cost of £650 to low revenue households is critical, and as will probably be made by way of the advantages system it’s going to land direct within the financial institution accounts of those that want it most.
‘However the wait to offer this help has already brought on important injury, and delaying a part of this cost to the Autumn dangers compounding this.’
Mr Sunak additionally has also unveiled a windfall tax on energy firms.
The Chancellor beforehand was towards the thought, claiming it might hamper these firms’ investments and lift costs for customers.
However he later appeared to alter his tune, saying ‘no choices are off the desk’ if he doesn’t see ‘important funding again within the UK economic system’.
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