Millions of households will be eligible for the support measure to help with soaring inflation.
Chancellor Rishi Sunak has announced a new package of support worth £15 billion to help the country through the cost of living crisis.
Among them, is a one-off payment of £650 for eight million families on benefits to ease the pressure of rising energy bills.
The sum will be applied to those on Universal Credit, Tax Credits, Pension Credit, and legacy benefits from July.
Those eligible won’t need to apply, but will receive two direct payments – the first in July and the second in autumn – from the Department of Work and Pensions straight to their bank accounts.
One-off payments of £300 to pensioners and £150 for those receiving disability benefits were also announced.
“We need to make sure that for those whom the struggle is too hard, and for those whom the risks are too great, they are supported,’’ Mr Sunak said in the House of Commons while unveiling the new support package.
The chancellor vowed to provide support to those across the country by revising his previous energy bill loan of £200 which he announced in March.
It has now been doubled to £400 and households will no longer need to repay the money.
“We are meeting our responsibility to provide the most help to those on the lowest incomes. I believe that is fair, and I’m confident the House will agree,” he told MPs.
“But there are many families who do not require state support in normal times, they are also facing challenging times. Is it fair to leave them unsupported? The answer must surely be no.
“While it is impossible for the government to solve every problem, we can and will ease the burden as we help the entire country through the worst of the crisis.”