Millions of UK households are set to receive correspondence regarding the Warm Home Discount scheme on a confirmed date. This initiative provides a £150 reduction on electricity bills, directly applied to the energy provider rather than a cash payout.
Eligible households, identified by their receipt of specific benefits as of August 24, can anticipate receiving notification starting from October 20. While residents of England and Wales automatically receive the discount, those in Scotland must be in receipt of the Guarantee Credit element of Pension Credit to qualify for automatic payment.
Previously, demonstrating high energy costs was a requirement for benefits other than Pension Credit, but this condition has been eliminated by the Department for Energy Security and Net Zero (DESNZ) for England and Wales. Consequently, it is estimated that an additional 2.7 million households could benefit from the scheme, totaling approximately 6.1 million recipients.
In related news, energy bills are expected to rise this winter, with the Ofgem price cap increasing to £1,755 for a standard dual fuel household on a variable rate tariff. The price adjustment will be effective from October 1 until December 31, impacting those on standard variable rate (SVR) tariffs.
While the price cap sets limits on charges for gas and electricity units, as well as fixed daily connection fees, the total cost of energy is still dependent on individual consumption levels. Ofgem’s price cap figure is based on average household energy consumption assumptions, reflecting 2,700 kWh of electricity and 11,500 kWh of gas annually.
