Millions of households in the UK are now receiving communication regarding a one-time £150 reduction on their electricity bill starting today.
These letters contain details about the Warm Home Discount program, which has reopened to provide a direct £150 deduction on electricity bills, with the payment being forwarded to the respective energy supplier.
Typically, this discount is applicable between late October and March for households where an individual was receiving specific benefits on the qualifying date, which varies annually.
This year, the qualifying date is August 24, and eligibility requires that one of the specified benefits was being received on that date. Residents of England or Wales will automatically receive the Warm Home Discount, while those in Scotland will only receive it automatically if they receive the Guarantee Credit element of Pension Credit.
Residents with other qualifying benefits must manually apply by contacting their energy provider, as the Warm Home Discount scheme is not available in Northern Ireland.
The Department for Energy Security and Net Zero (DESNZ) has confirmed the removal of the high energy use requirement for the Warm Home Discount in England and Wales. Previously, applicants had to demonstrate high energy costs, which is no longer necessary.
DESNZ anticipates an increase in the number of households benefiting from the discount by 2.7 million, reaching an estimated total of 6.1 million households.
Energy bills have recently increased, with the Ofgem price cap rising from £1,720 to £1,755 for a standard dual fuel household paying by direct debit. This price cap will remain effective until December 31, subject to further updates, covering consumers on standard variable rate tariffs.
While there is a price cap on unit charges for gas and electricity, as well as fixed daily standing charges, the total amount paid for energy is based on individual usage.
The Ofgem price cap indicates the approximate annual cost for a household with average energy consumption, assuming 2,700 kWh of electricity and 11,500 kWh of gas used over a year.
