Millions of households in the UK are set to receive a £150 reduction on their electricity bills this winter as part of an annual assistance program involving numerous energy suppliers.
The Warm Home Discount scheme has been launched, offering a direct £150 deduction on electricity bills, with the payment made to the energy supplier rather than as a cash deposit to the individual’s bank account.
Participating energy suppliers for the Warm Home Discount scheme include various companies offering support to eligible households.
To qualify for the Warm Home Discount, individuals must be receiving specific benefits on the stipulated qualifying date, which for this year is August 24.
Automatic enrollment for the Warm Home Discount is applicable for residents in England and Wales, while in Scotland, automatic eligibility applies only to those receiving the Guarantee Credit element of Pension Credit.
For other eligible benefits, individuals must apply directly to their energy supplier to receive the Warm Home Discount, as the scheme is not available in Northern Ireland.
Amidst these developments, energy bills are projected to see a slight increase in January, with the Ofgem price cap rising from £1,755 to £1,758 for a typical dual fuel household paying via direct debit.
The current price cap will remain effective until March 31, after which it will be subject to revision. Consumers on a standard variable rate tariff are covered by the Ofgem price cap, excluding those under fixed-rate deals.
While there is a price cap on unit charges for gas and electricity, as well as standing charges, the overall energy bill is still dependent on individual consumption levels.
The price cap serves as an indicator of expected annual costs for households with average energy usage, assuming consumption of 2,700 kWh of electricity and 11,500 kWh of gas over a year.