Around six million households across Britain will receive letters from this week confirming they will get £150 off their energy bills this winter. The Warm Home Discount letters will begin arriving from today and will continue to be issued through to January 2027.
The letters explain how the discount works, with the £150 applied directly to the recipient's electricity account rather than their bank account. The payment is awarded to homes where someone is claiming certain means-tested benefits, such as Universal Credit or Pension Credit.
Scheme expansion and eligibility
Nearly 2.3 million additional families, including around one million with children, received the rebate last year after the expansion of the scheme. The letters will tell households whether they will get the discount automatically or if they need to apply, with the application deadline set for February 26, 2027.
There are reports that the Government is considering increasing the Warm Home Discount by £100 as part of the Budget to help struggling households with rising energy bills, although this has not been confirmed by the Treasury.
Energy costs and support
The Ofgem price cap for a typical household paying by direct debit is currently set at £1,723 a year, but energy analysts at Cornwall Insight are forecasting an increase to £1,999 in January.
Minister for Energy Consumers Polly Billington said: "I know that many families will be struggling with their energy bills this winter. That is why I urge those who think they qualify for the Warm Home Discount to keep an eye out for a letter confirming their eligibility."
Billington added: "Energy is an absolute essential, which is exactly why in October we cut VAT on all electricity bills and earlier this year we removed £150 of costs off bills, giving families breathing space this winter."
Industry response
Ned Hammond, Deputy Director of Policy (Customers) at Energy UK, said: "The Warm Home Discount offers vital help for millions of households through the colder months, and this week the government will begin sending letters to eligible customers to explain how the support will be delivered."
Hammond added: "As we face the prospect of another winter of high and volatile energy prices, we encourage anyone struggling with their bill to contact their supplier to see what help is available for them."
