The Department for Work and Pensions (DWP) has confirmed that four benefits automatically make millions of families across the UK eligible for this year's Warm Home Discount. The discount, available to around six million households, provides £150 off electricity bills during the winter months.
The DWP is urging anyone receiving means-tested benefits to ensure they are named on their electricity bill by August 23 to receive the financial help. This is particularly relevant for those who have recently moved house and may not be listed on the bill.
Eligible benefits and automatic payment
In England and Wales, households receiving Housing Benefit, Income-related Employment and Support Allowance, Pension Credit, or Universal Credit will be eligible, the same group as last winter. The £150 payment is made automatically to those who qualify, helping with the rising cost of heating homes during colder months.
Last winter, nearly a million additional families with children received extra support with the cost of living, following an expansion of the scheme.
Government statements and additional support
Energy Secretary Miatta Fahnbulleh said: "Families will be worried about their energy bills this winter and our focus is on giving them breathing space, as we continue to work to bring down bills." She added: "Almost a million more families with children received the £150 Warm Home Discount last winter, after we expanded scheme. If you know someone who might benefit, please start spreading the word and encourage them to check they are named on their energy bill."
Eligible customers on pre-payment meters who use a key or card to top up will also need to ensure their household's account is registered in their name to receive the Warm Home Discount in November.
VAT removal and future of the scheme
The reminder follows an announcement from Prime Minister Andy Burnham earlier this month that VAT will be removed from electricity bills from October 1, expected to save £45 off the yearly Ofgem price cap. The former Mayor of Greater Manchester introduced the policy as one of his first acts as leader of the government.
Earlier this year, the government confirmed that millions of eligible households will receive the Warm Home Discount for the rest of the decade, with the scheme set to continue through to 2030/1. Last year's Budget has taken an average £150 off energy bills, which is factored into bills for years to come. The Warm Homes Plan will also reduce energy use, lower bills for millions of households, and help lift households out of fuel poverty.
