Chancellor announces £650 energy bill cuts for 8 million households on means‑tested benefits

Chancellor announces £650 energy bill cuts for 8 million households on means‑tested benefits

Sunak’s £650 Energy Bill Boost: A Lifeline for Eight Million Families

Rishi Sunak’s latest announcement is a clear signal that the government is stepping in to help struggling households across the UK. He’s pledged a one‑off payment of £650 to eight million families, which will be means‑tested and—most importantly—doesn’t have to be repaid.

Why It Matters

  • Immediate Relief: £650 can cover a chunk of the inflated energy bill—or even pay for that extra hot cup of tea after the winter chill.
  • Pay‑back Freedom: Unlike a loan, there’s no debt hanging over your purse, meaning you’re free to budget for your groceries, childcare or the infamous Yorkshire pudding.
  • Targeted Support: Fewer households hit the 9% uplift average (which was estimated at just £530) will get a full boost instead.

What’s Happening in the Energy Market?

Ofgem’s chief executive, Jonathan Brearley, warned MPs that energy prices could spike as high as £2,800 next October—an increase not seen since the 1970s. That’s why the furlough‑era‐style measures are coming into play now rather than later.

Further Support for Pensioners and Disabled People

  • Pensioners: Starting this autumn, eight million retiree households that qualify for the winter fuel payment will receive an additional £300 one‑off payment for extra cost‑of‑living support.
  • Disabled Beneficiaries: From September, the six million people on non‑means‑tested disability benefits will get a £150 one‑off payment (in addition to the £650, bringing some total to £800).

With combined payments, many households will see their total support jump to £800—an amount that can truly make a difference when the cost of living is on an upward trajectory.

Takeaway

Sunak’s push for an £650 payment is a direct acknowledgement that “people are struggling.” It’s a tangible, non‑repayable hand‑out aimed at easing the energy burden—just in time for the cold‑weather surge, and with extra cushions for those who need it most.