Millions of UK households are set to receive correspondence regarding the Warm Home Discount program on a confirmed date. The scheme provides a £150 reduction on electricity bills, directly credited to the energy provider instead of the recipient’s bank account.
Starting from October 20, eligible households will receive notification by mail. To qualify for the Warm Home Discount, individuals must have been receiving specific benefits as of August 24. In England and Wales, the discount is automatically applied, while in Scotland, automatic eligibility is limited to those receiving the Guarantee Credit element of Pension Credit.
For other qualifying benefits, manual application through the energy supplier is necessary. Notably, the Warm Home Discount scheme is not available in Northern Ireland. The Department for Energy Security and Net Zero (DESNZ) has recently eliminated the requirement for high energy usage as a criterion for the discount in England and Wales.
Estimates suggest an increase in the number of households benefitting from the discount by 2.7 million, reaching a total of approximately 6.1 million. Alongside this positive development, it is anticipated that energy bills will rise during the winter months, with the Ofgem price cap for a standard dual fuel household increasing from £1,720 to £1,755 via direct debit.
Effective from October 1 until December 31, the Ofgem price cap covers consumers on a standard variable rate (SVR) tariff. However, there is no universal cap on total energy costs, as charges are based on individual gas and electricity consumption. The Ofgem price cap sets limits on the charges for gas and electricity units, including fixed daily standing charges for energy network connections.
The stated price cap figure reflects the anticipated annual payment for a household with average energy usage. Assumptions are based on an average consumption of 2,700 kWh of electricity and 11,500 kWh of gas over a year.