Automatic £150 energy bill discount begins in October for eligible UK households
Support is on the way for low-income pensioners and households struggling with energy bills this winter. The Warm Home Discount scheme, which offers a reduction of £150 directly on gas and electricity bills, is to become active again for the winter of 2024.
Unlike cash payments, this discount is directly applied to energy accounts, ensuring those eligible save money on their energy costs. It falls under the discretion of energy providers as to when they will apply these discounts but it must occur between October and March, creating some variance in when people will see the benefit.
The Government has plans to write to qualified individuals regarding the specifics of the discounts implementation, Birmingham Live reports. Eligible state pensioners born before September 1958 who receive the Guarantee element of Pension Credit, along with other low-income individuals having high energy costs, are entitled to this assistance.
The development surfaces amidst controversy surrounding the Government's choice to means-test Winter Fuel Payments, another financial aid program designed for the colder months. The charity Age UK explains: "The Warm Home Discount is a one-off payment of £150 to help with the cost of energy during the winter. It's designed to make things a bit easier if you're living on a low income or pension.
"Getting a Warm Home Discount doesn't affect your entitlement to a Winter Fuel Payment or Cold Weather Payment. If your electricity supplier is part of the Warm Home Discount scheme then you don't need to apply for it – you'll get the payment automatically if you or your partner receive the Guarantee Credit part of Pension Credit, or another qualifying benefit, and have high energy costs.
"The money won't be paid to you directly – it'll be added as credit to your electricity account. This usually happens between October and March (you might be able to get the discount applied to your gas bill if you're a dual-fuel customer – i.e. you have a combined plan for gas and electricity with the same supplier).
"If you use a prepayment meter, you'll probably be given a top-up voucher. Some suppliers also offer indirect help to customers as part of the Warm Home Discount scheme. This might include advice on using less energy and help with reducing energy-related debts."
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