Millions of households are set to get a £150 discount on their energy bills this winter if they are eligible for certain benefits. The Warm Home Discount is a direct reduction on gas and electricity bills or a voucher for prepayment customers. To qualify for the discount in England and Wales, individuals must be receiving specific benefits from the Department for Work and Pensions.
If the benefit is in the recipient’s name, they must be listed on the electricity bill to automatically receive the Warm Home Discount. Energy suppliers will verify customer details starting from August 24. The discount is typically applied in October or November.
Residents of England and Wales will automatically receive the Warm Home Discount without needing to apply. In Scotland, automatic payment is for those receiving the Guarantee Credit element of Pension Credit, while others need to apply through their energy provider.
The Warm Home Discount scheme is not available in Northern Ireland. Over six million individuals are expected to be eligible for the discount this winter. The Department for Energy Security and Net Zero has announced the removal of the high-cost-to-heat threshold for the Warm Home Discount in England and Wales.
Following a 7% decrease in energy bills since July, households have seen reductions in their yearly bills. The average annual bill for direct debit payers has dropped from £1,849 to £1,720. Those with prepayment meters now pay an average of £1,672 annually, down from £1,803. Customers who pay upon receiving their bill have also seen reductions from £1,969 to £1,855 per year.
Minister for Energy Consumers, Miatta Fahnbulleh, emphasized the importance of ensuring eligible households benefit from the £150 discount. Encouraging eligibility checks and spreading awareness to friends and family were highlighted as crucial steps to maximize savings on energy bills.