All Brits WILL still receive £400 energy bills discount if Liz Truss becomes PM

ALL British households WILL still receive the £400 discount on energy bills if Liz Truss becomes PM, allies confirmed today.

Sources on her campaign stressed the cost of living payment will go ahead following fears it could be watered down.

The rebate, announced by the then Chancellor Rishi Sunak to combat soaring bills, is set to drop into families' bank accounts from October.

But top Truss supporter Simon Clarke suggested the richest families could be cut out of the scheme as they did not need the extra bung. 

The Chief Secretary to the Treasury, who is tipped to be the next Chancellor, told the Sunday Telegraph: "I do find it pretty odd that high earners are receiving £400 off their bills.

"As Conservatives, we ought to surely believe in targeting taxpayer money as best we can so that we actually achieve the best value and keep the burden on the exchequer as low as we can."

Yet The Sun understands all families are still in line for the payment regardless of their income. 

Sources close to Ms Truss said she will not "unpick" any of the support in the pipeline, adding that Mr Clarke was merely reflecting the general approach going forward.

The leadership favourite will also consider targeted support for the poorest this winter despite previously saying she would end "handouts" favoured by rival Mr Sunak.

The Treasury is drawing up another cost of living package for whoever enters No10 as bills are set to rise to an eye-watering £5,000 a year.

Ms Truss - the clear bookies' favourite - promises to cushion the pain by reversing the National Insurance rise and wiping green levies off energy bills.

Mr Sunak instead will continue his approach of more cash for the neediest, while also abolishing VAT on energy bills.

Sir Keir Starmer today unveiled Labour's plan to freeze the price cap at its current £1,900 rate so bills do not rise.

He would extend the windfall tax on oil and gas giants to fund the £29billion freeze, while also cancelling the £400 payment.