Exact date new £2,500 price cap on energy bills will come into effect

HOUSEHOLDS have received confirmation on how much bills will rise by - and the date that the change will take effect.

The Prime Minister Liz Truss today said that energy bills will be frozen for two years under a new Energy Price Guarantee.

It means a typical family will pay no more than £2,500 a year for their energy bills for the next two years, saving households £1,000 a year on average.

It means from October 1, households will have bills protected.

However, the cap is just on what firms can charge customers. Your bill could be higher, based on your energy usage.

The price cap is currently £1,971 a year - but it had been due to rise to £3,500 a year.

The announcement came as Ms Truss announced a package of support to ease the cost of living crunch.

Today, the Prime Minister announced:

• A two year price freeze on bills, saving households £1,000
• Support for businesses for at least six months
• Households will still get the £400 rebate on bills this winter
• Millions excluded by the price cap to get support from a new fund

It included support for businesses and new fund to help those who are not protected by the price cap, for example with heating oil or if they live in a park home.

This comes in addition to the £400 energy rebate 29 million households are set to receive next month.

The discount will be automatic and will be made up of six instalments, starting from October.

But millions of households will still be entitled to thousands of pounds in additional support.

The amount of financial help you'll be eligible for depends on your circumstances - but every household will get a discount on their energy bills.

Millions of households on Universal Credit and legacy benefits will have already received the first half of the £650 cost of living payment.

The energy bill support on offer was first announced by former chancellor Rishi Sunak back in May.

What help is already available?

From September the second, one million people receiving tax credits started to get the first half of the £650 cost of living payment.

The money will be paid in the same way you usually get your tax credits.

And from September 20, over six million people with disabilities are set to receive £150 to help with the rising cost of living.

From October the first, all UK households are set to receive the £400 energy bills rebate.

The payment will be made up of six discounts between October and March next year.

Households will receive a £66 energy bill discount in October and November and a discount worth £67 in December, January, February and March.

We've listed how the leading energy suppliers plan to pay households the discount and are waiting on others to respond.

The way you'll be paid will depend on how you pay for your energy.

If you're on a credit meter the discount will come off your bills, but if you're on a prepayment meter you'll get a voucher.

Check with your supplier to confirm how you'll receive the cash.

In November, a £300 one-off "Pensioner Cost of Living Payment" will be paid out to eight million households.

It will be given to those who already get the winter fuel payment - which is worth between £100 and £300 for those over state pension age.

Payments for the £150 Warm Home Discount scheme will likely begin from December.