The money will be paid over the six coldest months of the year, starting with payments of £66 in October and November, rising to £67 from December to March. Prime Minister Liz Truss recently announced a “freeze” on the rising energy price cap, with the typical UK household to pay no more than £2,500 on energy bills for the next two years.

Prior to the new policy, the average household’s yearly bill was to increase to £3,549 from October 1 under the latest Ofgem price cap.

The £2,500 Energy Price Guarantee will apply in Scotland, England and Wales, superseding the price cap until 2024.

Government officials are in discussions with energy suppliers about how the guarantee policy will be implemented, but it will not affect the £400 rebate.

This means that homes on a standard tariff will see their bills increase from £1,971 to £2,100, after the discount has been applied.

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This price is set as the same price as that paid by the person reselling it, with the Government expecting landlords to pass on the discount.

Landlords with a domestic connection who charge all inclusive rent, with fixed energy costs as part of the rental charge, should also pass on the rebate to their tenants.

For those who do not have a domestic electricity meter or a direct relationship with an electricity supplier, further funding is to be provided equivalent to the £400 rebate.

More details about how this scheme will work are to be announced by ministers in the autumn.

What happens to those who switch suppliers or my home situation changes?

The discount will be applied by meter points, so it will not be affected if a person switches supplier.

The scheme will provide six monthly payments based on six qualifying dates rather than based on a single date in October.

This means that new eligible households will still benefit from the relevant portion of the total £400 as there will be several qualifying dates.

Further Government support is going out to people on low incomes, including a £650 one-off payment to people on certain benefits, including Universal Credit.