Millions of households across the UK are set to benefit from a £150 reduction on their electricity bills this winter, as numerous energy suppliers participate in the annual Warm Home Discount scheme.
The Warm Home Discount program has been relaunched, offering a direct £150 deduction on electricity bills. The discount is applied by the energy supplier directly, rather than being given as cash to the recipient’s bank account.
Participating energy suppliers in the Warm Home Discount initiative include various companies. To be eligible for the scheme, individuals must be receiving specific benefits on the qualifying date, which varies annually and for this year is August 24.
Residents in England and Wales will automatically receive the Warm Home Discount, while in Scotland, automatic payment is only made to those receiving the Guarantee Credit element of Pension Credit. For other eligible benefits, individuals must apply manually by contacting their energy provider. Unfortunately, there is no Warm Home Discount scheme in Northern Ireland.
Meanwhile, energy bills are expected to see a slight increase in January, with the Ofgem price cap rising from £1,755 to £1,758 for a typical dual fuel household paying via direct debit. This price cap will remain effective until March 31, catering to customers on a standard variable rate tariff.
It is important to note that the Ofgem price cap does not impose an overall limit on energy costs, as bills are calculated based on actual usage of gas and electricity. The cap controls the charges for units of energy and standing charges, which are fixed daily fees for energy network connectivity.
The price cap amount reflects the anticipated annual expenditure for an average household’s energy consumption, assuming 2,700 kWh of electricity and 11,500 kWh of gas usage over a year.