Warm Home Discount explained as 2.7million households set for £150 energy help
Millions more households will be eligible for £150 off their energy bills this winter as the Warm Home Discount scheme is set to be expanded.
The Warm Home Discount gives you £150 directly off your electricity bill. In new plans confirmed this week, an extra 2.7 million households will be entitled to the Warm Home Discount this winter. This would increase the number of eligible people to over six million in total.
Energy Secretary Ed Miliband said: 'Millions of families will get vital support with the cost of living this coming winter, demonstrating this government's commitment to put money in people's pockets through our Plan for Change.'
What is the Warm Home Discount?
The £150 discount is applied to your energy account, as opposed to a direct cash payment into your bank. It is normally applied between October and March.
If you're a prepayment meter, you will be sent a top-up voucher. If you live in England and Wales and you are eligible for the Warm Home Discount, you should receive it automatically. The rules are different in Scotland, where you may need to apply.
Who is eligible for the Warm Home Discount - and how is it changing?
If you live in England and Wales, you currently qualify for the Warm Home Discount if you get the Guarantee Credit element of Pension Credit, or you claim means-tested benefits and have high energy costs.
But the Government has now confirmed the high-cost-to-heat threshold for the Warm Home Discount in England and Wales, meaning you will now qualify just based on the benefits you claim.
If you live in Scotland, you qualify if you get the Guarantee Credit element of Pension Credit, or you claim a means-tested benefit. Your electricity supplier may have extra eligibility criteria.
If you claim Pension Credit in Scotland, then you will get the Warm Home Discount automatically - otherwise, you will need to apply. The level of spend available in Scotland for suppliers is also increasing from this winter.
How many more people will get Warm Home Discount?
The number of families who will receive the discount for the first time, broken down by region, include:
North East England: 100,000
North West England: 280,000
Yorkshire and the Humber: 210,000
East Midlands: 160,000
West Midlands: 270,000
East of England: 250,000
London: 570,000
South East England: 350,000
South West England: 220,000
Wales: 110,000
Scotland: 240,000
Other ways to cut your energy bill
If you're struggling, your first step should be to contact your energy provider and ask what help is available. You should ideally do this before you fall behind on a payment.
Some of the tailored support you may be offered includes a payment plan, payment breaks and affordable debt repayments. It is also worth asking them if you're definitely on their cheapest deal.
If you're a prepayment energy customer and you're worried about running out of power, you should be able to access emergency credit. This is usually worth between £5 and £10, but some may offer more than this - for example, Utilita gives customers up to £15.
You should also check if your energy firm offers hardship funds or grants that you don't need to pay back. For example, the British Gas Energy Trust offers help worth up to £2,000.
In the winter, there are Cold Weather Payments worth £25 that are issued when the average temperature is recorded as, or forecast to be, 0C or below over seven consecutive days.
This is available to people on certain benefits. There are also Winter Fuel Payments worth up to £300 for pensioner households. Finally, the following charities can offer you support if you are struggling to pay for your energy, or if you are in energy debt:
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