Who is eligible to get the £400 discount after the £2,500 energy bill freeze?

MILLIONS are expecting an extra £400 this winter to help out with the rising cost of living.

But many aren't sure what to expect now that Prime Minster Liz Truss has set out her new Energy Price Guarantee.

Ms Truss froze energy bills at £2,500 last week for two years under her cost of living support package.

It means households will save £1,000 after the original price cap was set for £3,549.

However, the cap is just on what firms can charge customers. Bills could still be higher, based on energy usage.

Many are confused about whether they'll still get the £400 booster payment within the next few months as promised, or whether the new price cap affects it.

The answer is no, the price cap doesn't affect it, and you'll still get the £400 starting from October.

Nearly 30 million households are eligible for the discount which is being administered by energy firms.

It's up to individual energy suppliers to determine how their customers are paid.

Bulb, E.ON, E.ON Next, Scottish Power, Shell Energy, Octopus Energy, Utilita and Utility Warehouse will apply the £400 rebate as a discount off bills.

It will be paid in six instalments between October and March, with the first payment worth £66.

You can read here about plans so far for how individual energy suppliers will pay the sum.

What other grants are available?

There are plenty of other grants available to help with the cost of living, some of which we'll list below.

£150 disability cost of living payment

Former Chancellor Rishi Sunak announced in May that six million disabled Brits will receive £150 from 20 September.

The money is to help cover the costs of running energy intensive equipment at home.

For many disability benefit recipients who receive means tested benefits, the £150 will come on top of the £650 they will receive separately.

The automatic payments will be exempt from tax, will not count towards the benefit cap, and will not have any impact on existing benefit awards.

£150 Council Tax rebate

In February, the government announced it would be offering a council tax rebate to combat rising energy bills.

The £150 payment is for people whose homes fall under council tax bands A-D and local councils are responsible for deciding who is eligible and making payments.

The government set a deadline of September 30 for all payments to be made, and payments started back in April.

Many people who pay their council tax bill by direct debit have already had the cash paid directly into their bank accounts.

But thousands who don't must apply for the £150 from their local authority.

You can find your local authority by using the government's handy tool.

Some households are yet to receive payments, but councils have given updates on when residents in those areas should expect to receive them.

£150 from £144 million discretionary fund

Thousands of people who are not eligible for a council tax rebate could still get up to £150 free cash to help with the rising cost of living.

A separate £144 million fund has also been launched, which local councils can dish out to vulnerable and low income households in their area.