British Gas explains how customers will receive their £400 cost of living payment

The energy giant British Gas has explained to customers how they will be receiving their £400 cost of living payment.

The government announced that millions of households will receive the Energy Bill Support Scheme (EBSS) to help with rising energy bills this winter.

However, it's up to each energy supplier to decide how customers will receive the payment and this will depend on how you pay for your energy.

Under the scheme households will receive £400 which will be paid over six months, starting from October 2022.

British Gas said its customers will get the following each month: October £66, November £66, December £67, January 2023 £67, February £67, March £67, Hull Live reports.

British Gas has emailed customers letting them know how they will receive their payment (Corbis via Getty Images)

In an email to its customers, British Gas said Direct Debit customers will get the discount straight in their bank account each month - like a refund - once their Direct Debit payment has gone through.

British Gas explained: "For example, if your Direct Debit is £100 a month, you'd pay that as normal. Then a few days later, £67 will be paid in to your bank account.

The government announced that millions of households will receive the payment from October (Getty Images)

"If your Direct Debit is less than £67 a month, say £50 for example, £50 will be refunded to your bank account and the remaining £17 will be applied as credit to your energy account."

If you pay for energy via cash or cheque with British Gas then you will have the discount applied to your energy account balance each month.

They added that there is no need to apply for the scheme and the money will not need to be repaid. It will also not affect customers' credit ratings in any way.

Direct debit customers will get the payment directly into their bank accounts (Getty Images)

The support was announced by Chancellor Rishi Sunak back in May but the payments won't reach peoples accounts until October.

EDF have also announced that payments will be made in a similar way to British Gas with the rebate going directly into their bank accounts after making their usual monthly direct debit payment.

British Gas, E.ON, E.ON Next, EDF Energy, Shell Energy, Utilita and Utility Warehouse have all confirmed exactly how their customers will be receiving their payments.

Bulb, Octopus Energy, Ovo and Scottish Power are still yet to announce how they plan to make the payment to customers.