Millions of households are set to receive a £150 deduction from their energy bills this winter if they are eligible for specific benefits.
The Warm Home Discount is a discount directly applied to gas and electricity bills, or as a voucher for prepayment customers. To qualify for this discount in England and Wales, individuals must be recipients of certain benefits from the Department for Work and Pensions (DWP).
To automatically receive the Warm Home Discount, the benefit recipient’s name must be listed on the electricity bill. Energy suppliers will verify customer details starting from August 24.
Residents in England and Wales will automatically receive the discount without needing to apply. However, in Scotland, automatic payment is only for those receiving the Guarantee Credit element of Pension Credit; others must apply through their energy provider.
Unfortunately, there is no equivalent scheme for the Warm Home Discount in Northern Ireland. It is estimated that more than six million people will be eligible for this discount during the winter.
The Department for Energy Security and Net Zero (DESNZ) recently announced the removal of the high-cost-to-heat threshold, previously a qualifying criteria for the Warm Home Discount in England and Wales.
Following a 7% reduction in energy bills from July, the average yearly bill for households paying by direct debit has decreased from £1,849 to £1,720. For those with a prepayment meter, the average yearly bill dropped from £1,803 to £1,672. Additionally, the annual charge for bill payment upon receipt decreased from £1,969 to £1,855.
Minister for Energy Consumers, Miatta Fahnbulleh, emphasized the government’s commitment to helping households save money on energy bills through initiatives like the Warm Home Discount. Encouraging eligible individuals to ensure they are listed on their energy bills to benefit from the discount.