Millions of households are set to receive a discount of £150 on their energy bills this winter if they are eligible for certain benefits. The Warm Home Discount is a reduction directly applied to gas and electricity bills, or a voucher for prepayment customers. To qualify in England and Wales, individuals must be receiving specific benefits from the Department for Work and Pensions (DWP).
If the benefit is in the recipient’s name, they must also 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 issued in October or November.
Residents in England and Wales will automatically receive the discount without needing to apply. However, in Scotland, automatic payment is only for those receiving Guarantee Credit along with Pension Credit. Others must apply through their energy provider. Unfortunately, there is no equivalent scheme in Northern Ireland.
The Department for Energy Security and Net Zero (DESNZ) recently announced the removal of the high-cost-to-heat threshold for the Warm Home Discount in England and Wales. This criterion, which determined properties with high energy costs, has been eliminated.
Energy bills have decreased by 7% since July. On average, households paying by direct debit have seen their annual bill reduced from £1,849 to £1,720. For prepayment meter users, the average yearly bill has dropped from £1,803 to £1,672, and for those paying on receipt of the bill, it has decreased from £1,969 to £1,855.
Minister for Energy Consumers, Miatta Fahnbulleh, emphasized the importance of spreading awareness to ensure eligible households benefit from the £150 discount. The aim is to alleviate financial burdens and provide support ahead of the winter season.
