Around 29 million households in the UK will receive £400 in energy bill discounts from October, with the payments being made in six instalments over six months.
Announcing the news, Business and Energy Secretary Kwasi Kwarteng said: "People across the country are understandably worried about the global rise in energy costs, and the pressure this is placing on everyday bills. While no government can control global gas prices, we have a responsibility to step in where we can and this significant £400 discount on energy bills we're providing will go some way to help millions of families over the colder months."
Those with a domestic electricity meter point paying for their energy via standard credit, payment card and direct debit will receive an automatic deduction to their bills. Traditional prepayment meter customers will be provided with Energy Bill discount vouchers in the first week of each month, issued via SMS text, email or post.