A £200 cash payment is to begin arriving in the bank accounts of close to two million households from this week to help pay rising heating bills.

Homes across the country who don't use mains gas to keep their properties warm are being given the extra cash to help pay their winter energy bills under the launch of the Alternative Fuel Payment scheme.

While customers with traditional domestic energy contracts have been making use of an extra £66 or £67 in help each month since October 2022, those who live off-grid haven't benefited from the energy bill support scheme that in total will give UK households a £400 discount on gas and electric bills.

But from Monday, close to two million homes many of which are in rural areas and which use alternative energy sources - such as heating oil or liquefied petroleum gas - are to get some extra help.

Most people eligible for the cash lump sum will get the £200 AFP automatically as a credit on their electricity bill.

However some customers - such as those living in park homes or on static houseboats with no direct energy supplier - will need to actively apply for the money later this month through an online portal that has yet to open for applications.

Meanwhile from Wednesday, energy suppliers will also start issuing £150 credits to businesses and public and voluntary sector organisations that also use alternative fuels to heat their buildings.

Suppliers will deliver this financial help up until March 10, albeit most off-grid companies will receive the money later this month, and applicants should get the cash automatically with no need to submit an application.

Minister for Energy and Climate Graham Stuart said: "Our main energy bill support schemes have seen millions of homes and businesses across the country get much needed help to cover costs, with figures today showing nearly £3 billion in government support has been paid out to business to date. Now we’re getting support to those remaining few that are off the gas grid and most difficult to reach.

"I am determined to see households and businesses of all stripes protected from global pressures this winter – whether that’s those living in a houseboat, park home or operating a rural hospital or school. That’s why we are kicking off payments of £200 to households using alternative fuel to heat their homes today - while businesses and organisations using alternative fuels will receive a boost of £150 in the coming weeks."

As payments begin trickling out to off-grid homes and businesses ministers are warning households to remain vigilant to scams and only ever enter their details on the government's gov.uk website.