Millions of households in the UK are receiving notifications regarding a one-time £150 discount on their electricity bills starting today. These letters provide details about the Warm Home Discount scheme, which offers a direct £150 reduction on electricity bills, with the payment being sent to the energy supplier.
The discount is typically applicable from late October to March and is accessible to households where a member was receiving specific benefits on the qualifying date, which varies annually. This year, the qualifying date is August 24, and eligibility requires receiving one of the designated benefits on that date.
Residents in England or Wales will automatically receive the Warm Home Discount, while in Scotland, automatic payment is contingent on receiving the Guarantee Credit element of Pension Credit. For other qualifying benefits, manual application through the energy supplier is necessary, as the Warm Home Discount scheme is not available in Northern Ireland.
The Department for Energy Security and Net Zero (DESNZ) has removed the high energy use requirement for the Warm Home Discount in England and Wales. Previously, households had to demonstrate high energy costs to qualify, but this element has been eliminated.
DESNZ anticipates that the number of households benefiting from the discount could increase by 2.7 million, reaching an estimated total of 6.1 million households. Meanwhile, energy bills have recently risen, with the Ofgem price cap for a standard dual fuel household paying by direct debit increasing from £1,720 to £1,755.
The Ofgem price cap remains in effect until December 31, covering consumers on standard variable rate (SVR) tariffs. However, the cap does not restrict the total amount consumers can pay for energy, as bills are based on actual usage of gas and electricity. The price cap governs charges for gas and electricity units, as well as standing charges for connection to the energy network, providing an indication of annual costs for average energy consumption levels.
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