Millions of households in the UK are set to benefit from a £150 reduction in their electricity bills this winter as part of the annual Warm Home Discount scheme. The scheme, which has reopened, provides the discount directly to the electricity bill of eligible households. Participating energy suppliers will apply the discount on behalf of customers.
To qualify for the Warm Home Discount scheme, recipients must be receiving specific benefits on the qualifying date, which for this year is August 24. Eligible households in England and Wales will automatically receive the discount, while in Scotland, automatic eligibility applies only to those receiving the Guarantee Credit element of Pension Credit. For other qualifying benefits, individuals need to apply directly through their energy supplier. It’s important to note that the Warm Home Discount scheme is not available in Northern Ireland.
As households prepare for potential energy bill increases in January, it has been announced that the Ofgem price cap for a typical dual fuel household paying by direct debit will rise slightly from £1,755 to £1,758. This price cap will remain in effect until March 31, after which it will be reviewed. Consumers on standard variable rate (SVR) tariffs will be protected by the Ofgem price cap unless they are on a fixed-rate deal.
While the price cap sets limits on unit charges for gas and electricity, as well as standing charges, the total energy bill is still influenced by individual consumption levels. The Ofgem price cap is based on assumed average household energy usage levels of 2,700 kWh of electricity and 11,500 kWh of gas over a year.