The warm home discount will be received by millions of families every winter for the rest of the decade, the government has announced.
With the cost of living crisis still hitting households hard and wholesale energy prices soaring, the government has decided to extend the £150 payment for eligible households to help pay their energy bills.
It comes as the average energy bill for a household in England, Wales and Scotland remaining on a standard variable tariff reached £1,758 a year this winter.
The latest extension to the warm home discount will see eligible households receive a £150 discount on their energy bills every winter until 2030/1.
It comes after the government expanded the warm home discount last year, adding 2.7 million families to the scheme and bringing the total number of eligible households to around six million.
What is the warm home discount?
The warm home discount is a £150 discount on your electricity bill, although you may be able to get it off your gas bill if your supplier offers both and you’re eligible.
How do I know if I am eligible?
If you live in England and Wales, you qualify for the warm home discount if you either receive the guarantee credit element of pension credit or if you are on a low income and receiving benefits.
The qualifying means-tested benefits include housing benefit, income support, income-based jobseekers allowance and universal credit.
The Warm Home Discount takes £150 off electricity bills.
(Johan Siebke)
In Scotland, people qualify if on the guarantee credit element of pension credit or if they are on a low income and meet their energy supplier’s criteria.
You still qualify for the warm home discount if you use a pre-pay or pay-as-you-go electricity meter
Do I need to apply?
All households in England and Wales that are receiving a qualifying means-tested benefit should get the discount automatically, as long as their supplier has more than 1,000 customers.
Those who have not received a letter or the discount but think they are eligible should also call 0800 030 9322 by 27 February, the Department for Energy Security and Net Zero said.
In Scotland, you will need to apply if you are on a low income and can do so through your energy supplier.
Energy secretary Ed Miliband confirmed the extension of the warm home discount.
(James Manning – PA Images via Getty Images)
The money is not paid to you directly; rather, your energy provider applies the discount to your bill.
Energy secretary Ed Miliband said: “Tackling the affordability crisis is the government’s number one priority.
“That is why we are today confirming to millions of eligible families across the country that they will receive the £150 warm home discount every winter for the rest of the decade.
“That will give families much-needed peace of mind that they will continue to receive vital support, as we take action to bring down bills for good.”