Prime Minister Liz Truss announced an energy bill freeze shortly after entering No 10 this month.
The price cap, which was due to rise to £3,549 a year in October, will now remain at £2,500 for two years.
And while this will go some way to helping families struggling to keep up with rocketing energy prices, it means average energy bills will still be double what they were at the start of the year.
Ms Truss has been reluctant to announce any new handouts, but thegrants installed by previous PM Boris Johnsonremain in place.
This includes a £400 grant, which will begin being paid to households next month. Here is everything you need to know about it.
What is the £400 energy grant?
The £400 energy payment is being made to every household in the country, without means testing.
Originally, the plan was for households to receive a £200 discount on their energy bills in October, which would then be paid back over five years from 2023, with customers paying an additional £40 on their bills each year.
However, in late May – and after much criticism – Rishi Sunak, the chancellor at the time, announced the discount would be increased to £400 and would no longer have to be paid back.
How will the grant work?
The £400 discount will start in October and be paid to consumers in instalments over six months, with the grants administered through energy suppliers.
The discount will break down into instalments of £66 in October and November, rising to £67 per month from December until March 2023.
It will be provided on a monthly basis, regardless of whether people pay bills monthly or quarterly or have an associated payment card.
Those with a domestic electricity meter point who make payments through payment cards, standard credit, and direct debit will receive an automatic deduction on bills.
More from Bills
People who use pre-payment meters and top up their credit before using energy will be provided with discount vouchers in the first week of each month.
These will be sent by text message, email or post with the most up-to-date contact details customers have left with suppliers.
The discount also applies to students and other tenants renting properties with domestic electricity contracts from landlords where fixed energy costs are included in their rental charges. In these circ*mstances, landlords who resell energy to their tenants should pass the discounted payments on appropriately, in line with Ofgem rules to protect tenants.
In all cases, no household should be asked for bank details at any point. Ministers are urging consumers to stay alert of potential scams and report these to the relevant authorities where they are suspected.
