Millions of households are set to receive a £150 reduction on their winter energy bills if they are eligible for specific benefits. The Warm Home Discount is a direct deduction on gas and electricity bills, or a voucher for prepayment customers. To qualify for this discount in England and Wales, individuals must be receiving certain benefits from the Department for Work and Pensions.
If the benefit is in your name, you need to be listed on your electricity bill to automatically receive the Warm Home Discount, with energy providers verifying customer details starting from August 24. The discount is typically applied in October or November.
Residents in England and Wales will automatically receive the discount, while those in Scotland need to apply through their energy supplier if they do not receive the Guarantee Credit element of Pension Credit. Unfortunately, there is no Warm Home Discount scheme in Northern Ireland. It is anticipated that more than six million people will be eligible for this benefit in the upcoming winter season.
The Department for Energy Security and Net Zero (DESNZ) has decided to eliminate the high-cost-to-heat threshold for the Warm Home Discount in England and Wales. Previously, this criterion determined if a property qualified for the discount.
Following a 7% decrease in energy bills since July, households paying by direct debit have seen their yearly bills drop from £1,849 to £1,720. For those with prepayment meters, the average yearly bill has reduced from £1,803 to £1,672, and for those paying on receipt of bill, it has decreased from £1,969 to £1,855.
Minister for Energy Consumers, Miatta Fahnbulleh, emphasized the importance of spreading awareness about the Warm Home Discount to eligible households to help them save money on their energy bills.
