Energy customers have just days left until Sunday to secure a £150 payment delivered directly into their accounts. Households must act by 23 August or risk missing out entirely.
Approximately six million households will receive the rebate this winter, with roughly 250,000 in Scotland getting it automatically for the first time. Yet the government has encouraged eligible households to verify they're named on their bill to receive the Warm Home Discount automatically.
Eligibility and Deadline
Those claiming means-tested benefits automatically qualify for the Warm Home Discount, provided they're listed as their household's energy bill payer. Their name must appear on the energy bill by 23 August to access the support, so checking now and making any required amendments is advisable.
Eligible customers using pre-payment meters who top up with a key or card will also need to confirm their household's account is registered under their name. Energy customers have been informed that 24 firms have joined a scheme delivering the £150 payment straight into their accounts.
Benefits Covered
In England and Wales, households in receipt of Housing Benefit, Income-related Employment and Support Allowance, Pension Credit, and Universal Credit are eligible. In Scotland, around 250,000 households will get the payment automatically for the first time, with eligibility tied to Pension Credit, certain Universal Credit elements, disability or pensioner premiums, or having a child under five while unemployed.
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. 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."
Energy Price Cap Increase
On Wednesday Ofgem will announce its quarterly energy price cap for the period October 1 to December 31. Household energy prices are set to increase again to the highest level for three years heading into winter, according to new forecasts. The energy price cap is currently expected to increase by 4% in October compared with the current rate, experts at Cornwall Insight said.
Cornwall said it expected a typical household to be facing an annual bill of £1,729 from October, up from £1,663, based on Ofgem's updated definition of a typical consumer. It said this would be the equivalent of £1,941 per year based on its previous calculations, up from £1,862 currently. It would mark the highest average bill since July 2023.
This comes after the Prime Minister's decision to scrap VAT on domestic electricity bills from 1 October, knocking £45 off the annual Ofgem price cap. However, the experts said the recent swing in global energy prices has more than offset the downward impact of the VAT policy.
Scheme Extended to 2030
Earlier this year, the government confirmed that millions of qualifying households will continue to receive the Warm Home Discount right through to 2030/1, securing the scheme for the remainder of the decade. Last year's Budget delivered an average saving of £150 on energy bills, a reduction that has already been built into future billing calculations.
Dr Craig Lowrey, principal consultant at Cornwall Insight, said: "Rising energy bills aren’t welcome at the best of times, but with winter approaching this latest hike will hit struggling households especially hard. Driven by international conflict rather than domestic policy, it is a stark reminder that our energy bills remain tied to events thousands of miles away. Moments like this are the strongest argument for reducing Britain’s reliance on volatile international gas. While temporary relief like VAT cuts help soften the blow, they don’t touch the underlying fact that Britain is heavily dependent on imports of natural gas."
A Government spokesman said: "Tackling the cost of living remains a key priority for this Government and we know families will be worried by the prospect of higher energy bills this winter. We’re acting to give consumers breathing space with the cost of living – cutting VAT on energy bills, ensuring around six million households get the £150 warm home discount this winter, and making millions of homes cheaper to run through our warm homes plan. Alongside our efforts to support rapid de-escalation in the Middle East, we will do everything we can to shield consumers from global energy shocks and bring down bills for good."
