Chancellor Rishi Sunak announced a multi billion pound package of cost of living support on Thursday. Unveiling the policy in the House of Commons, Mr Sunak acknowledged that people were struggling.
The measures will be partly funded by a temporary levy on oil and gas companies which are enjoying bumper profits as a result of soaring fuel and energy prices, that is expected to raise £5bn over the next year.
But what does it mean to the people of Britain, who gets what and when? Here are the main questions answered.
Read more: How £400 energy bill discount works for pre-payment meter gas and electric customers
So, tell us about this windfall tax
Mr Sunak doesn't call it that, he prefers a “temporary targeted profits levy” to tax extraordinary profits of energy companies, while still incentivising investment.
How much is the windfall tax going to raise and what will be the overall cost?
Initially, the chancellor announced the total expenditure was £15bn - £5bn of it from energy companies - but it later transpired the Treasury had not included the £200 for every household it had announced in February, which was going to be a loan, but Mr Sunak turned it into a grant and doubled it to £400 on Thursday.
The total figure is?
It is reportedly expected to be £21bn.
So who gets what?
There will be a £650 one-off payment to eight million of the lowest-income households
There will be a £300 payment to eight million pensioners who get winter fuel payments
There will be a £150 extra payment to six million people on disability benefits
The energy bill rebate scheme households with a domestic electricity meter to double to £400
For this last one, when the original energy bill rebate scheme was announced in February people had to repay it. Is that still the case?
No, Mr Sunak has said it will not have to be repaid
How will the £400 discount be paid?
A ll UK households will get a grant which will reduce energy bills by £400 from October. The discount will be made automatically by your energy supplier. There is no need to apply.
How will the £650 be paid?
This will be an automatic payment into bank accounts of those affected and comes in two instalments - the first in July and the second sometime in autumn. Payments for those on tax credits only will follow shortly afterwards.
When will those entitled to it receive the £150?
Those on disability benefits will receive £150 in September, which may be on top of the £650 payment, because in many cases they have higher energy use.
Anyone receiving the following benefits will be entitled to the extra £150: Disability Living Allowance, Personal Independence Payment, Attendance Allowance, Scottish Disability Benefits, Armed Forces Independence Payment, Constant Attendance Allowance and War Pension Mobility Supplement.
Is there any help to local authorities?
An extra £500m is earmarked for household support fund delivered by local councils, increasing it to a total £1.5bn
Read next:
