Millions of households in the UK are set to benefit from a £150 reduction on their winter electricity bills through the annual Warm Home Discount scheme, which numerous energy suppliers are participating in.
The Warm Home Discount program offers a direct £150 deduction on electricity bills, processed through the energy supplier rather than as a cash payment to the recipient’s bank account.
To qualify for the Warm Home Discount, individuals must be receiving one of the specified benefits on the designated date, which for this year is August 24. Residents in England and Wales will automatically receive the discount, while those in Scotland need to be eligible for the Guarantee Credit element of Pension Credit to receive it automatically.
For other eligible benefits, individuals must apply directly to their energy supplier to receive the discount. Notably, the Warm Home Discount scheme is not available in Northern Ireland.
As energy costs are expected to rise slightly in January, with the Ofgem price cap increasing to £1,758 for standard dual fuel households paying via direct debit, the price cap will remain in effect until March 31. The cap applies to those on standard variable rate tariffs.
Although there is a price cap in place, actual energy bills are calculated based on usage of gas and electricity. The Ofgem price cap governs the charges for gas and electricity units, as well as fixed daily standing charges for connection to the energy network.
The Ofgem price cap is an estimate of annual costs for an average household consuming 2,700 kWh of electricity and 11,500 kWh of gas.